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Answer» Heya....
SEE here for your ANSWER....
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√ Marginal propensity to consume (MPC)
• It refers to the RATIO of CHANGE in consumption and the change in total INCOME..
• It can never be 0 due to the survival autonomous consumption occurs always...
• MPC = ∆C / ∆Y
√ Marginal propensity to save (MPS)
•It is the ratio of change in saving and change in total income...
• It can never be less than 0 as change in saving can't be negative...
• MPS = ∆S/∆Y...
Thank you
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