CBSE 2017 Class 12 Economics Outside Delhi Set-3

Question : 2 of 5

Marks: +1, -0

Define marginal propensity to save.

Solution:

Marginal propensity to save (MPS) is the ratio of change in saving to change in income. It is shown as:

\;\text " MPS "\;=\;{∆ S}/{∆ Y}

Where,

∆ S=

change in saving

∆ {\Y}=

change in income

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