Question

Which formula correctly defines Marginal Propensity to Save (MPS)?

पर्याय

• \[MPC=c=\frac{\Delta C}{\Delta Y}\]

• \[MPS=s=\frac{\Delta S}{\Delta Y}\]

• \[APC=\frac{C}{Y}\]

• \[C=\bar{C}+cY\]

Answer 1

MPS is the change in saving due to a unit change in income. It is measured by \[\frac{\Delta S}{\Delta Y}\].