Answer the question on the basis of the following data for a hypothetical economy. $\begin{array}{cc}
\underline{\text { Disposable Income} } &\underline{ \text { Saving } }\
0& \mathbf{- 1 0} \
50 & 0 \
100 & 10 \
150 & 20 \
200 & 30
\end{array}$
Refer to the given data.At the $100 level of income,the average propensity to save is:
A) .10.
B) .20.
C) .25.
D) .90.

Question

Answer the question on the basis of the following data for a hypothetical economy. $\begin{array}{cc}
\underline{\text { Disposable Income} } &\underline{ \text { Saving } }\
0& \mathbf{- 1 0} \
50 & 0 \
100 & 10 \
150 & 20 \
200 & 30
\end{array}$
 Refer to the given data.At the $100 level of income,the average propensity to save is:
A) .10.
B) .20.
C) .25.
D) .90.

Quizplus · Accepted Answer

The average propensity to save (APS) is calculated as saving divided by disposable income. At the $100 level of income, saving is $10, so APS = 10/100 = 0.10.

Answer the Question on the Basis of the Following Data