[This is part of the series: The Complete Guide To Economics 101.]
What is the marginal propensity to save (MPS)?
The Marginal Propensity To Save is the change in an increase in income that is not spent in the economy.
Formally, this is where:
MPC + MPS = 1
Obviously, rearranging the equation, this can be rewritten as:
MPS = 1 – MPC
