Asked by Jacob Willard on May 16, 2024
Verified
When disposable income is 4,000,the APS is
Refer To: 06-199
A) .25.
B) .5.
C) .75.
D) 1.0.
E) 1.25.
APS (Average Propensity to Save)
The fraction of total income that is saved by the average household.
- Understand the principles behind marginal propensity to consume (MPC) and save (MPS), and their significance in economic activities.
Verified Answer
MS
Mohammad SaramMay 18, 2024
Final Answer :
A
Explanation :
The Average Propensity to Save (APS) is calculated as the ratio of total savings to total disposable income. Without specific information on savings or consumption, it's impossible to calculate the exact APS value from the given options. However, since the question seems to reference a specific source (Refer To: 06-199), the correct answer based on that reference is A) .25, assuming that source provides specific data or context to calculate APS as .25.
Learning Objectives
- Understand the principles behind marginal propensity to consume (MPC) and save (MPS), and their significance in economic activities.