wht is mpc and mps in economics
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Explanation:
In economics,
(1)
MPC = Marginal Propensity to Consume.
The proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
(2)
MPS = Marginal Propensity to Save.
The proportion of an aggregate raise in income that a consumer saves rather than spends on the consumption of goods and services.
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Answer:
The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income.
Explanation:
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