The coefficient (1-b) is also known as
• a)
K
• b)
1-MPS
• c)
MPS
• d)
MPC

### Related Test

 Bhoomika Tank Sep 28, 2018
As in consumption function = C(constant) + bYHere b is MPC.... (i) nd the relation between MPC and MPS is MPS + MPC =1 thus we can say that MPS = 1 - MPC ... (ii) So 1 - b = 1 - MPC (i) that means MPS (ii)

As in consumption function = C(constant) + bYHere b is MPC.... (i) nd the relation between MPC and MPS is MPS + MPC =1 thus we can say that MPS = 1 - MPC ... (ii) So 1 - b = 1 - MPC (i) that means MPS (ii)