If disposable income increases from $250 to $300 and saving increases from $40 to $50, how much is the average propensity to save when disposable income is $300?
A) 0.133
B) 0.10
C) 0.167
D) 0.2

Question

Quizplus · Accepted Answer

The average propensity to save (APS) is calculated by dividing total savings by total disposable income. When disposable income is $300, savings are $50. Thus, APS = $50 / $300 = 0.167.

If Disposable Income Increases from $250 to $300 and Saving