Total desired saving divided by total income is called the
A)marginal propensity to save.
B)average propensity to consume.
C)average propensity to spend.
D)total propensity to save.
E)average propensity to save.

Question

Quizplus · Accepted Answer

The total desired saving divided by total income is known as the average propensity to save (APS), which measures the proportion of total income that an individual or household saves on average. The other choices listed are not correct definitions of this concept.

Total Desired Saving Divided by Total Income Is Called the