The Marginal Propensity to Save (MPS) can be defined as: Question 6 options: 1) The fraction of total income that is taxed. 2) The fraction of additional income that is saved rather than spent. 3) The total amount of savings in the economy. 4) The interest rate on savings accounts.
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MPS refers to the portion of additional income that a household saves rather than spends on consumption. Show more…
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The marginal propensity to consume ( MPC) is defined as the fraction of a. total income that a household consumes rather than saves. b. total income that a household either consumed or saved. c. extra income that a household consumes rather than saves. d. extra income that a household either consumes or saves.
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