The marginal propensity to save is .
A) equal to the slope of the saving function
B) always greater than the marginal propensity to consume
C) equal to 1 plus the slope of the consumption function
D) equal to the inverse of the marginal propensity to consume

Question

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is the change in saving divided by the change in income, which is represented by the slope of the saving function.

The Marginal Propensity to Save Is