Average Propensity To Save
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Average Propensity to Save
Average Propensity to Save (APS) may be defined as the ratio of total savings to total disposable income. Symbolically,
APS = S/Y
Where S = total savings and
Y total disposable income.
For example, total saving in an economy is Rs. 2,000 crore and total disposable income is Rs. 10,000 crore. Then, the APS will be calculated as follows:
APS = S/Y = Rs. 2,000 / Rs. 10,000 = 0.2 or 20%
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APS = S/Y
Where S = total savings and
Y total disposable income.
For example, total saving in an economy is Rs. 2,000 crore and total disposable income is Rs. 10,000 crore. Then, the APS will be calculated as follows:
APS = S/Y = Rs. 2,000 / Rs. 10,000 = 0.2 or 20%
For more help in Average Propensity to Save click the button below to submit your homework assignment