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Determination of Income and Employment
Question
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Define marginal propensity to save (MPS).

Answer

The ratio of change in saving (AS) to change in income (AY) is called MPS. Symbolically: MPS = ΔS/ΔY.

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Some More Questions From Determination of Income and Employment Chapter

Explain the meaning of aggregate supply (AS).

Calculate consumption level for Y = र 1000 crores if consumption function is C = 300 + 0.5Y.

State relationship between income and consumption.

What is Breakeven point?

What are the types of Propensity to consume?