If MPS in the economy increases, what will be the effect on MPC of economy ? Option 1: Supply increases Option 2: MPC decreases Option 3: MPC increases Option 4: MPC will neither increase nor decrease

The answer is 'MPC decreases'. View full solution:

CUET Economics - If MPS in the economy increases, what will be the effect on MPC of economy ? | PYQs + Solutions

CUET Economics

Macro

Easy

Supply increases

MPC decreases

MPC increases

MPC will neither increase nor decrease

✅ Correct Option: 2

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