Asked by Clara McNulty on Jul 18, 2024
Verified
Calculate the MPS.
Disposable Income
Money that becomes available for household savings and expenditures after income taxes are subtracted.
MPS
Marginal Propensity to Save, which is the proportion of an increase in income that is saved rather than spent on consumption.
Saving
The process of setting aside a portion of current income for future use, typically in the form of investments or deposit accounts.
- Find the Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) values.
Verified Answer
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Learning Objectives
- Find the Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) values.