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प्रश्न
Differentiate between marginal propensity to save and average propensity to save.
Distinguish between MPS and APS.
Differentiate between average propensity to save and marginal propensity to save.
फरक स्पष्ट करा
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उत्तर
| Marginal propensity to save | Average propensity to save | |
| 1. | MPS is the ratio of change in total desired saving to change in total income. | The average propensity to save is the proportion of income that households want to save. |
| 2. | MPS = `(ΔS)/(ΔY)` | APS = `S/Y` |
| 3. | MPS measures the change in saving due to a change in income. | APS measures the overall savings out of total income. |
| 4. | MPS lies between 0 and 1. | APS can be between 0 and 1, or even more than 1 (if saving exceeds income). |
| 5. | It is a marginal concept (concerned with change). | It is an average concept (concerned with totals). |
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