-Refer to the above diagram.At disposable income level D,the average propensity to save is equal to:
A) CD/BD.
B) CD/OD.
C) OD/CD.
D) OA/OB.

Question

-Refer to the above diagram.At disposable income level D,the average propensity to save is equal to:
A) CD/BD. 
B) CD/OD. 
C) OD/CD. 
D) OA/OB.

Quizplus · Accepted Answer

The average propensity to save is equal to the amount saved divided by disposable income. At disposable income level D, the amount saved is CD and disposable income is OD. Therefore, the average propensity to save is CD/OD.

-Refer to the Above Diagram