"Economists are generally concered about the rising Marginal Propensity to Save (MPS) in an economy" Explain why - Economics - Determination of Income and Employment

Question

" E c o n o m i s t s   a r e   g e n e r a l l y  
c o n c e r e d   a b o u t   t h e   r i s i n g
  M a r g i n a l   P r o p e n s i t y   t o  
S a v e   ( M P S )   i n   a n   e c o n o m y
" E x p l a i n   w h y ?

Sanjari Kalantri · Accepted Answer

Dear Student,

A rising marginal propensity to save in an economy implies a
falling investment multiplier as
Investment multiplier k = 1MPS
A falling investment multiplier implies a fall in income level in
an economy which can negatively affect the gross domestic product
of an economy Therefore, the economists are generally concerned
about rising MPS in an economy

" E c o n o m i s t s a r e g e n e r a l l y c o n c e r e d a b o u t t h e r i s i n g M a r g i n a l P r o p e n s i t y t o S a v e ( M P S ) i n a n e c o n o m y " . E x p l a i n w h y ?

$" E c o n o m i s t s a r e g e n e r a l l y c o n c e r e d a b o u t t h e r i s i n g M a r g i n a l P r o p e n s i t y t o S a v e (M P S) i n a n e c o n o m y " . E x p l a i n w h y ?$