How can i calculate the marginal propensity to save MPS?

The marginal propensity to save (MPS) can be calculated by dividing the change in savings by the change in disposable income.

The formula to calculate MPS is:

MPS = Change in Savings / Change in Disposable Income

To calculate the change in savings, subtract the initial savings from the final savings. To calculate the change in disposable income, subtract the initial disposable income from the final disposable income.

For example, if initial savings is $500 and final savings is $600, and initial disposable income is $1000 and final disposable income is $1200, the calculation would be:

Change in Savings = $600 - $500 = $100
Change in Disposable Income = $1200 - $1000 = $200

MPS = $100 / $200 = 0.5

Therefore, the marginal propensity to save in this example is 0.5.