## Answers

Marginal Propensity Save (MPS) is calculated by the following formula

MPS = Changes in the Savings / Changes in the Income

In the question, changes in the savings = 1600 - 1000 = 600

And changes in the income = 42000 - 40000 = 2000

Thefefore, the MPS = 600 / 2000 = 0.3

Answer = 0.30

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