The marginal propensity to save (MPS) is
A) the rate at which real savings changes over time.
B) the percentage of real disposable income saved.
C) the difference between the amounts of real disposable income consumed and saved.
D) the percentage of an additional dollar of real disposable income that will go toward additional real savings.

Question

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is the percentage of an additional dollar of real disposable income that will go toward additional real savings. It measures the extent to which people save a portion of any additional income they receive.

The Marginal Propensity to Save (MPS) Is