Question

WHAT IS MPS OR THE 'MARGINAL PROPENSITY TO SAVE.
Select one:
A:THE PROPORTION OF TOTAL ADDITIONAL INCOME TO TOTAL ADDITIONAL PLANNED SAVINGS
B:THE FRACTION OF TOTAL ADDITIONAL INCOME THAT IS USED FOR CONSUMPTION
C:NONE OF THE ABOVE
D:THE PROPORTION OF TOTAL ADDITIONAL PLANNED SAVINGS TO TOTAL ADDITIONAL INCOME​

Answer 1

Marginal Propensity to Save is referred as the ratio of change in Saving to change in Income.

→ ∆S / ∆Y

Option D is the correct answer.

Some related concepts :-

1. Ratio of Total savings and Total income is known as APS ie Average propensity to Save. ( S/Y)

2. The ratio of change in Consumption to change in Income is MPC .( ∆C/∆Y)

3. the ratio of total consumption to total income is called APC. (C/Y)

Answer 2

Answer:

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WHAT IS MPS OR THE 'MARGINAL PROPENSITY TO SAVE.

Select one:

A:THE PROPORTION OF TOTAL ADDITIONAL INCOME TO TOTAL ADDITIONAL PLANNED SAVINGS

B:THE FRACTION OF TOTAL ADDITIONAL INCOME THAT IS USED FOR CONSUMPTION

C:NONE OF THE ABOVE

D:THE PROPORTION OF TOTAL ADDITIONAL PLANNED SAVINGS TO TOTAL ADDITIONAL INCOME

Explanation:

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