CBSE 2026 · Region 3 · Set 1 · Q5

Select the correct formula to calculate the value of Marginal Propensity to Save (MPS) :

I. $\displaystyle \dfrac{\text{Change in Savings }(\Delta \text{S})}{\text{Change in Consumption }(\Delta \text{C})}$

II. $\displaystyle \dfrac{\text{Change in Savings }(\Delta \text{S})}{\text{Change in Income }(\Delta \text{Y})}$

III. $\displaystyle 1$ – Marginal Propensity to Consume (MPC)

IV. $\displaystyle \dfrac{\text{Change in Income }(\Delta \text{Y})}{\text{Change in Savings }(\Delta \text{S})}$