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Question
Which formula correctly defines Marginal Propensity to Save (MPS)?
Options
\[MPC=c=\frac{\Delta C}{\Delta Y}\]
\[MPS=s=\frac{\Delta S}{\Delta Y}\]
\[APC=\frac{C}{Y}\]
\[C=\bar{C}+cY\]
MCQ
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Solution
MPS is the change in saving due to a unit change in income. It is measured by \[\frac{\Delta S}{\Delta Y}\].
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