(Table) When disposable income is $1,200, what is the value of the average propensity to save? $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Disposable } \
\text { Income }
\end{array} & \text { Consumption } \
\hline \$ 1,000 & \$ 1,200 \
\hline \$ 1,200 & \$ 1,300 \
\hline \$ 1,400 & \$ 1,400 \
\hline \$ 1,600 & \$ 1,500 \
\hline \$ 1,800 & \$ 1,600 \
\hline
\end{array}$$
A) -0.5
B) -1.5
C) -1.083
D) -0.083

Question

(Table) When disposable income is $1,200, what is the value of the average propensity to save? $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Disposable } \
\text { Income }
\end{array} & \text { Consumption } \
\hline \$ 1,000 & \$ 1,200 \
\hline \$ 1,200 & \$ 1,300 \
\hline \$ 1,400 & \$ 1,400 \
\hline \$ 1,600 & \$ 1,500 \
\hline \$ 1,800 & \$ 1,600 \
\hline
\end{array}$$
A) -0.5
B) -1.5
C) -1.083
D) -0.083

Quizplus · Accepted Answer

The average propensity to save (APS) is calculated as savings divided by disposable income. At $1,200 income, savings = $1,200 - $1,300 = -$100. APS = -$100 / $1,200 = -0.083.

(Table) When Disposable Income Is $1,200, What Is the Value