MPC vs. MPSv

Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPSv) are complements.

Whatever we don't consume... we save. And vice-versa!

MPC + MPSv = 1.00

Scenario: Johnny's marginal propensity to consume is 0.80. What's his marginal propensity to save?

MPC = 0.80

0.80 + MPSv = 1.00
MPSv = 1.00 (- 0.80)
MPSv = 0.20

Answer: Given that Johnny's MPC is 0.80, this means his MPSv is 0.20.

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