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Difference between APS and MPS

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Difference between APS and MPS

    • Posted by Madhu Bala 5 years, 4 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Yogita Ingle 5 years, 4 months ago

    Simply put, total saving (S) divided by total income (Y) is called APS (APS = S/Y) whereas change in savings (ΔS) divided by change in income (ΔY) is called MPS (MPS = ΔS/ΔY).

    The value of APS can be negative when consumption expenditure becomes higher than income. For example, if income is र 1,000 and consumption expenditure is र 1,200, then saving is -200 (i.e., dissaving).

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