Practicing Success
Practicing Success
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Marginal propensity to save is zero when |
Income is zero Autonomous consumption is 1 The entire income is saved The entire additional income is consumed |
The entire additional income is consumed |
MPS i.e. Marginal Propensity to Save is the change in savings per unit change in income. It is denoted by s and is equal to 1− c . MPS lies between 0 and 1. MPS = 1 if the entire additional income is saved whereas, MPS = 0 if the entire additional income is spent/consumed. |
