CUET Preparation Today
MPS is defined as : |
Change in consumption per unit change in Income Change in consumption per unit of Income Change in savings per unit of Income Change in savings per unit change in income |
Change in savings per unit change in income |
The correct answer is option (4) : Change in savings per unit change in income MPS measures the change in savings (how much more is saved) when there's a unit change in income (how much more income is received). It reflects how much of an additional income someone chooses to save rather than spend.
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