how do we use marginal property
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MPS can be calculated as the change in savings divided by the change in income. Or mathematically, the marginal propensity to save (MPS) function is expressed as the derivative of the savings (S) function with respect to disposable income (Y). where, dS=Change in Savings and dY=Change in income.
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Answer:
MPS can be calculated as the change in savings divided by the change in income. Or mathematically, the marginal propensity to save (MPS) function is expressed as the derivative of the savings (S) function with respect to disposable income (Y). where, dS=Change in Savings and dY=Change in income.
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