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Question
Explain MPS.
Explain
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Solution
MPS is the ratio of change in total desired saving to change in total income.
Symbolically,
MPS = `(DeltaS)/(DeltaY)`
Where ΔS refers to change in total desired saving and ΔY refers to change in income.
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Chapter 12: Theory of Income and Employment - TEST YOURSELF QUESTIONS [Page 230]
