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How are marginal propensity to Consume and marginal Propensity to Save calculated?

How are marginal propensity to Consume and marginal Propensity to Save calculated?

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Answer #1

Marginal Propensity to Consume(MPC)

Marginal Propensity to save (MPS)

Example:

Income Spending Saving MPC MPS
500 400 100 - -
750 500 250 0.4 0.6
1250 850 400 0.7 0.3

working notes for MPC

I case

II case

I case

II case

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