Question

marginal propensity to save is defined as

a) S/Y
b) 1-∆C/∆Y
c) Y/S​

Answer 1

Explanation:

Marginal propensity to save is the proportion of an increase in income that gets saved instead of spent on consumption.

Answer 2

Answer:

Marginal propensity to save is the proportion of an increase in income that gets saved instead of spent on consumption. MPS varies by income level.

Marginal Propensity to save refers to the percentage change in savings for every one rupee of change in the income. It is the ratio between the change in income and its corresponding change in consumption.

Marginal Propensity to save= savings / Income

Option a is correct.