-Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save equal when real disposable income equals $1400?
A) 0.09
B) 0.7
C) 0.91
D) 1.1

Question

-Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save equal when real disposable income equals $1400?
A) 0.09 
B) 0.7 
C) 0.91 
D) 1.1

Quizplus · Accepted Answer

The average propensity to save (APS) is calculated as the ratio of savings to disposable income. If the APS is 0.09, it means that 9% of the disposable income is saved.

-Refer to the Above Table