Question

State the diffrence between MPC and MPS ? in points

Answer 1

Heya....

See here for your answer....

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√ Marginal propensity to consume (MPC)

• It refers to the ratio of change in consumption and the change in total income..

• It can never be 0 due to the survival autonomous consumption occurs always...

• MPC = ∆C / ∆Y

√ Marginal propensity to save (MPS)

•It is the ratio of change in saving and change in total income...

• It can never be less than 0 as change in saving can't be negative...

• MPS = ∆S/∆Y...

Thank you

Answer 2

MPC:

⭐MARGINAL PROPENSITY TO CONSUME

⭐IT REFERS TO RATIO OF CHANGE IN CONSUMPTION AND THE CHANGE IN TOTAL INCOME.

⭐MPC=DELTA C/DELTA

MPS:

⭐MARGINAL PROPENSITY TO SAVE

⭐IT REFERS TO THE RATIO OF CHANGE IN SAVING AND CHANGE IN TOTAL INCOME

⭐MPS=DELTA S /DELTA Y

⚡I HOPE IT HELPS YOU ⚡