The fraction, or percentage, of total income which is saved is called the:
A) Average propensity to save
B) Marginal propensity to save
C) Disposable income schedule
D) Saving schedule

Question

Quizplus · Accepted Answer

The average propensity to save refers to the proportion of income that is saved and is calculated as the ratio of savings to total income. It represents the average savings behavior of the population and is expressed as a percentage. Therefore, option A is the correct choice. Option B refers to the increment in savings due to an increase in income, while options C and D refer to schedules that relate income to consumption and saving respectively.

The Fraction, or Percentage, of Total Income Which Is Saved