Question

What is called marginal propensity to save​

Answer 1

Explanation:

hi

In Keynesian economic theory, the marginal propensity to save (MPS) refers to the proportion of an aggregate raise in income that a consumer saves rather than spends on the consumption of goods and services.

Answer 2

❥︎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. ... MPS helps determine the Keynesian multiplier, which describes the effect of increased investment or government spending as an economic stimulus.