The _____ is the change in saving associated with a change in income.
A) average propensity to consume
B) marginal propensity to consume
C) average propensity to save
D) marginal propensity to save

Question

Quizplus · Accepted Answer

The definition being described is the marginal propensity to save (MPS). The MPS measures the change in saving that occurs as a result of a change in income, and is calculated as the change in saving divided by the change in income. The other options, average propensity to consume (APC), marginal propensity to consume (MPC), and average propensity to save (APS), measure different aspects of consumer behavior and do not directly relate to the change in saving associated with a change in income.

The _____ Is the Change in Saving Associated with a Change