Total desired saving divided by total income is called the
A)average propensity to consume.
B)average propensity to save.
C)average propensity to spend.
D)marginal propensity to save.
E)total propensity to save.

Question

Quizplus · Accepted Answer

The total desired saving divided by total income is called the average propensity to save. It represents the proportion of income that individuals choose to save on average.

Total Desired Saving Divided by Total Income Is Called the