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Which of the following is the Average propensity to save?

AIt is the consumption per unit income.

BIt is the savings per unit of income.

CIt is the change in saving per unit change in income.

DIt is the change in consumption per unit change in income

Answer:

B. It is the savings per unit of income.

Read Explanation:

APS is calculated by dividing total savings by income level. Usually, disposable (after-tax) income is used. For example, if the income level is 100 and total savings for that level is 30, then APS is 30/100 or 0.3. APS can never be 1 or greater than 1.


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