Assuming that = $20,000 and C = $22,000,we would find that the average propensity to save equals
A)0.9.
B)1.1.
C)-0.1.
D)-0.8.

Question

Assuming that  = $20,000 and C = $22,000,we would find that the average propensity to save equals
A)0.9. 
B)1.1. 
C)-0.1. 
D)-0.8.

Quizplus · Accepted Answer

The given equation does not provide any information related to savings or income. Therefore, we cannot solve for the average propensity to save. So, the answer is negative as the equation is not valid in determining the average propensity to save.

Assuming That = $20,000 and C = $22,000,we Would