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Marginal Propensity to Save is equal to ______ -

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Question

Marginal Propensity to Save is equal to ______

Options

  • ΔS - ΔY

  • `"Y"/"S"`

  • `(Δ"S")/(Δ"Y")`

  • S - Y

MCQ
Fill in the Blanks

Solution

Marginal Propensity to Save is equal to `underline((Δ"S")/(Δ"Y")).`

Explanation:

MPS (Marginal Propensity to Save) is an economic indicator of how savings change when income changes.

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