CBSE 2017 Class 12 Economics Outside Delhi Set-3

Question : 2

Total: 5

Define marginal propensity to save.

Solution:

Marginal propensity to save (MPS) is the ratio of change in saving to change in income. It is shown as:
‌ MPS ‌=‌

∆S

∆Y

Where, ∆S= change in saving
∆Y= change in income

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