Marginal Propensity to Save. Measures how much each additional dollar of income is saved. If the MPS is 0.1: As income rises by £1, savings rise by £0.10.
1st Class Economics
We Build the Future
Marginal Propensity to Save. Measures how much each additional dollar of income is saved. If the MPS is 0.1: As income rises by £1, savings rise by £0.10.