The marginal propensity to save is:
A)the change in saving divided by the change in disposable income.
B)the change in disposable income divided by the change in saving.
C)saving divided by disposable income.
D)disposable income divided by saving.
E)saving divided by consumption.

Question

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is defined as the change in saving divided by the change in disposable income. It measures the proportion of additional income that is saved rather than spent.

The Marginal Propensity to Save Is