Question

derive the formula of propensity to save.
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Answer 1

Explanation:

hi

The average propensity to save equals the ratio of total saving to total income; the marginal propensity to save equals the ratio of a change in saving to a change in income. The sum of the propensity to consume and the propensity to save always equals one (see propensity to consume).

M#

Answer 2

Answer:

MPS is most often used in Keynesian economic theory. It is calculated simply by dividing the change in savings observed given a change in income: MPS = ΔS/ΔY.