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Suppose Naomi gets a sales bonus at her place of work that gives her an extra $600 disposable income. She chooses to spend $360 and save the remaining $240. From this, you can tell that Winona's marginal
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Suppose Naomi gets a sales bonus at her place of work that gives her an extra $600 disposable income. She chooses to spend $360 and save the remaining $240. From this, you can tell that Winona's marginal propensity to save (MPS) is _____

User Jimmy Gong
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Marginal propensity to save is calculated by dividing the amount you save by the total amount you received as a bonus.

Naomi saved $240 out of her extra $600. Divide 240 by 600:


240 / 600 = 0.4

Naomi's MPS is 0.4.
User Vach
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