Question

What is "MPS" or the 'marginal propensity' to save? 

Options

• the proportion of total additional planned savings to total additional income

• the fraction of total additional income that is used for consumption.

• the proportion of total additiorull income to total additional planned savings

• None of these

Answer 1

the proportion of total additional planned savings to total additional income

Explanation:

The MPS is the ratio of total anticipated additional savings to total additional income.