The marginal propensity to save is
A) always greater than the marginal propensity to consume.
B) equal to the slope of the saving function.
C) equal to 1 plus the slope of the consumption function.
D) equal to the inverse of the marginal propensity to consume.

Question

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is defined as the slope of the saving function, which represents the relationship between income and saving. It measures the fraction of an additional dollar of income that is saved rather than spent.

The Marginal Propensity to Save Is