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# Define Marginal Propensity to Save. - CBSE (Arts) Class 12 - Economics

ConceptConsumption Function and Propensity to Save

#### Question

Define marginal propensity to save.

#### Solution

Marginal propensity to save refers to the ratio of change in saving to change in total income.

MPS = "Change in saving(ΔS)"/"Change in income(ΔY)"

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Solution Define Marginal Propensity to Save. Concept: Consumption Function and Propensity to Save.
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