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

Foreign trade, how can a country maintain equilibrium GDP with foreign trad...

how can a country maintain equilibrium GDP with foreign trade?

Gross domestic savings, Gross Domestic Savings  Income not devoted to ...

Gross Domestic Savings  Income not devoted to current consumption is saved. In an economy during a particular year some units will consume less than their income while some wi

Overnight rates and interest rates with longer maturity, Q. Overnight rates...

Q. Overnight rates and interest rates with longer maturity? By controlling overnight interest rates, central bank will affect interest rates with longer maturity. Main reason f

How central bank increases the target rate, How central bank increases the ...

How central bank increases the target rate Let's say that the central bank increases the target rate. When the target rate increases, the central bank needs to raise the overni

Balance of payment, derive balance of payment line graphically

derive balance of payment line graphically

Fiscal, what is the supply side

what is the supply side

GDP, BENEFITS OF GDP

BENEFITS OF GDP

What do you mean by wage inflation, Q. What do you mean by Wage inflation? ...

Q. What do you mean by Wage inflation? We will develop the Keynesian model removing the assumption of fixed nominal wages. We state wage inflation p w as the percentage averag

Discuss about asymmetric information, A) With asymmetric information, free ...

A) With asymmetric information, free markets may not lead to efficient outcomes because the market for a service or product may break down due to adverse selection. Explain what ad

How to calculate the total income of the economy, Consider an economy that ...

Consider an economy that having only of those who bake bread and those who make its ingredients. Assume that this economy's production is as follows: 1 million loaves of bread

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