What is marginal propensity to consume and marginal propensity to save?
Asked by Topperlearning User | 18th Apr, 2016, 02:19: PM
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 | 18th Apr, 2016, 04:19: PM
- What is meant by ex-ante saving?
- What is meant by autonomous consumption?
- Value of marginal propensity to consume not greater than 1. Why?
- Give the meaning of ex-ante investment.
- What is meant by ex post measures?
- What is planned investment?
- What is ex post saving?
- What changes occur if planned savings are greater than planned investment?
- What changes occur if planned savings are less than planned investment?
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