MPS Calculator







Formulas

The formulas used in the calculations are:

\[ \text{MPS} = 1 - \text{MPC} \]

\[ \text{MPS} = \frac{\Delta s}{\Delta yd} \]

Description

This calculator computes the Marginal Propensity to Save (MPS) based on the input values of increase in household savings and increase in disposable income. It also calculates the MPS from the given Marginal Propensity to Consume (MPC).

Example Calculation

Let's assume the following:

Calculate MPS from Δs/Δyd:

\[ \text{MPS} = \frac{300}{1000} = 0.3 \]

Calculate MPS from MPC:

\[ \text{MPS} = 1 - 0.7 = 0.3 \]

Therefore, the Marginal Propensity to Save (MPS) for this example is 0.3.