(Table) When disposable income is $1,200, what is the value of the average propensity to save?
A) -1.5
B) -1.083
C) -0.5
D) -0.083

Question

(Table) When disposable income is $1,200, what is the value of the average propensity to save? 
A) -1.5 
B) -1.083 
C) -0.5 
D) -0.083

Quizplus · Accepted Answer

Average propensity to save (APS) is the proportion of disposable income that is saved. APS = Saving/Disposable income. Given disposable income is $1,200, we need to know the value of saving to calculate APS. But the information about saving is not given in the question. Therefore, we cannot calculate the value of APS. Hence, the answer is D because we cannot determine the value of APS with the given information.

(Table) When Disposable Income Is $1,200, What Is the Value