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MPS, APS, MPC, APC - Macroeconomics Video Lecture | Macro Economics - B Com
FAQs on MPS, APS, MPC, APC - Macroeconomics Video Lecture - Macro Economics - B Com
| 1. What is the meaning of MPS in macroeconomics? |  |
Ans. MPS stands for Marginal Propensity to Save. It refers to the proportion of an additional dollar of income that is saved rather than spent. It is calculated by dividing the change in saving by the change in income.
| 2. What does APS represent in macroeconomics? | |
Ans. APS stands for Average Propensity to Save. It indicates the proportion of total income that is saved rather than spent. It is calculated by dividing total saving by total income.
| 3. How is MPC defined in macroeconomics? | |
Ans. MPC stands for Marginal Propensity to Consume. It represents the proportion of an additional dollar of income that is spent rather than saved. It is calculated by dividing the change in consumption by the change in income.
| 4. What does APC signify in macroeconomics? | |
Ans. APC stands for Average Propensity to Consume. It indicates the proportion of total income that is spent on consumption rather than saving. It is calculated by dividing total consumption by total income.
| 5. How are APS and MPC related to each other? | |
Ans. APS and MPC are complementary concepts in macroeconomics. They are related through the equation MPS + MPC = 1. This means that the marginal propensity to save (MPS) and the marginal propensity to consume (MPC) always add up to 1. As one increases, the other decreases, and vice versa.
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