MPS Calculator
MPS Calculator helps calculating the Marginal Propensity to Save.
What is MPS?
In economics, MPS (Marginal Propensity to Save) refers to the proportion of an aggregate raise in pay that a consumer spends on saving rather than on the consumption of goods and services.
MPS is a component of Keynesian macroeconomic theory.
The Formula of MPS
The basic formula of the MPS is as follows:
MPS = change in saving / change in income
Example of MPS
Suppose you receive an additional 10,000 dollars in your salary, and as a result you decide to save an additional 3,000 dollars, your MPS is 0.3 (3,000 dollars change in saving divided by 10,000 dollars change in income).
MPS Calculator
Suppose you receive an additional 10,000 dollars in your salary, and as a result you decide to:
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.1, and your MPS is 0.9.
to consume an additional 2,000 dollars, your marginal propensity to consume is 0.2, and your MPS is 0.8.
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.3, and your MPS is 0.7.
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.4, and your MPS is 0.6.
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.5, and your MPS is 0.5.
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.6, and your MPS is 0.4.
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.7, and your MPS is 0.3.
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.8, and your MPS is 0.2.
to consume an additional 1,000 dollars, your marginal propensity to consume is 0.9, and your MPS is 0.1.