Marginal propensity to save, Macroeconomics

Assignment Help:

Marginal Propensity to save (MPS) is the ratio of change in total saving to change in total disposable income.

Symbolically,   

MPS = ?S/?Y

For example, total saving in an economy increase from $ 2,000 crore to $ 5,000 crore, and total disposable income rises from $ 10,000 crore to $ 20,000 crore. Then, the MPS will be calculated as follows:

742_MPS will be calculated as follows.png


Related Discussions:- Marginal propensity to save

What degree of elasticity does chipotle burritos exhibit, Economists estima...

Economists estimate the short run elasticity of demand for a Chipotle burrito is -2.25. i)    What degree of elasticity does Chipotle burritos exhibit? ii)    A 1% change in

What is the malthusian theory on population, If population growth carry on ...

If population growth carry on then there will not be sufficient resources around for everyone this will lead to an event such as famine / war, which will decrease the population.

Create a graph showing average wages, For this question you will use the da...

For this question you will use the dataset "march01.dat", which includes wages (column 1), age (column 2), a dummy variable indicating females (column 3), and years of education (c

Determine the economic functions of money, Determine the Economic functions...

Determine the Economic functions of money There are three functions of economics of money - A medium of exchange. - A unit of account - Store of value.

Explain demand management of keynesian economists, Explain demand managemen...

Explain demand management of Keynesian economists The demand management of Keynesian economists of 50's and 60's is attacked by free-marketers for ignoring the importance of s

Effects of fiscal policy, (Effects of Fiscal Policy) Recently some legislat...

(Effects of Fiscal Policy) Recently some legislators have called for tax increases to reduce the federal budget deficit. Conservatives have countered that such tax increases could

Growth from trade in developing nations, Some scholarly papers have shown t...

Some scholarly papers have shown that growth from trade in developing nations can make the country worse. Can this happen? If so, describe the conditions required for this situatio

Joke among economists, There is a joke among economists that children are a...

There is a joke among economists that children are an "inferior good." In many countries there appears to be a negative relationship between income and the number children in a hou

Islm curve, why lm curve upward sloping and is curve downward sloping?

why lm curve upward sloping and is curve downward sloping?

International trade, developing countries benefit through international tra...

developing countries benefit through international trade from developed countries

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd