Saved Bookmarks
| 1. |
Define Marginal Propensity to Save (MPS). |
|
Answer» Marginal Propensity to Save (MPS): Marginal Propensity to Save is the ratio of change in saving to a change in income. MPS is obtained by dividing change in savings by change in income. It can be expressed algebraically as MPS = ΔS/ΔY ΔS = Change in Saving; .ΔY = Change in Income Since MPC + MPS = 1 MPS = 1 – MPC and MPC = 1 – MPS |
|