Calculation of MPS
MPS can be calculated as the change in savings divided by the change in income.
Or mathematically, the marginal propensity to save (MPS) function is expressed as the derivative of the savings (S) function with respect to disposable income (Y).
- where, dS=Change in Savings and dY=Change in income.
Read more about this topic: Marginal Propensity To Save
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““To my thinking” boomed the Professor, begging the question as usual, “the greatest triumph of the human mind was the calculation of Neptune from the observed vagaries of the orbit of Uranus.”
“And yours,” said the P.B.”
—Samuel Beckett (1906–1989)