If income rises from $10,000 to $10,600 and consumption rises from $9,100 to $9,622,the marginal propensity to save (MPS)is

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The marginal propensity to save (MPS) is calculated as the change in savings divided by the change in income. The change in income is $10,600 - $10,000 = $600. The change in consumption is $9,622 - $9,100 = $522, so the change in savings is $600 - $522 = $78. Therefore, MPS = $78 / $600 = 0.13.

If Income Rises from $10,000 to $10,600 and Consumption Rises