Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars.

-Refer to the above data.At an income level of $400 billion,the average propensity to save in economy (2)is:
A) .9125.
B) .0725.
C) .0875.
D) .9305.

Question

Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars.
 
-Refer to the above data.At an income level of $400 billion,the average propensity to save in economy (2)is:
A) .9125. 
B) .0725. 
C) .0875. 
D) .9305.

Quizplus · Accepted Answer

The average propensity to save (APS) is calculated as savings divided by income. If the savings at $400 billion income level is $35 billion, then APS = $35 billion / $400 billion = 0.0875.

Following Is Consumption Schedules for Three Private Closed Economies