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Unformatted text preview: Marginal propensity to save is the ratio of marginal saving (∆S) to the marginal income. MPS=∆S/∆DI MPC+MPS=1 (or CTS=1) c. The Marginal Propensity to Consume and the Marginal Propensity to Save as Slopes? In the consumption schedule the slope reflects the ratio of a change in DI. (That is rise over run) In the saving schedule the slope is the ratio of a change in S to the change in DI....
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This note was uploaded on 01/01/2012 for the course MIS 132 taught by Professor Hasandag during the Spring '11 term at Kadir Has Üniversitesi.
- Spring '11