CBSE Class 12-commerce Answered
What is marginal propensity to consume and marginal
propensity to save?
Asked by Topperlearning User | 18 Apr, 2016, 02:19: PM
Expert Answer
Marginal propensity to consume is the ratio of change in consumption (∆C) to change in income (∆Y).
MPC = ∆C/∆Y
Marginal propensity to save is the ratio of change in saving ((∆S) to change in income (∆Y).
MPS = ∆S/∆Y
Answered by | 18 Apr, 2016, 04:19: PM
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Asked by Topperlearning User | 18 Apr, 2016, 02:19: PM
ANSWERED BY EXPERT
