-In the above table, the average propensity to save when disposable income is $5,000 is
A) 0.2.
B) 0.1.
C) 0.0.
D) -0.1.

Question

-In the above table, the average propensity to save when disposable income is $5,000 is
A) 0.2. 
B) 0.1. 
C) 0.0. 
D) -0.1.

Quizplus · Accepted Answer

The average propensity to save (APS) is calculated as total savings divided by total disposable income. If the savings at a disposable income of $5,000 is $0 (implied by the question not providing specific numbers), then the APS would be $0 / $5,000 = 0.0, indicating that there is no saving at this level of income.

-In the Above Table, the Average Propensity to Save When