-Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save when real disposable income equals $4,000?
A)-0.45
B)0.69
C)0.7
D)1.45

Question

-Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save when real disposable income equals $4,000?
A)-0.45 
B)0.69 
C)0.7 
D)1.45

Quizplus · Accepted Answer

The average propensity to save (APS) is calculated as the ratio of savings to disposable income. If the consumption is greater than the income, savings will be negative, leading to a negative APS.

-Refer to the Above Table