Average Propensity to save

The Average Propensity to Save [APS] is defined as the fraction of aggregate national income which is devoted to savings.  Thus if S denotes savings then,

                                    APS = S/Y

In a closed ungoverned economy, where income is spent or saved, APC = APS = 1

Posted Date: 11/28/2012 6:24:50 AM | Location : United States

Ask an Expert

Related Discussions:- Average propensity to save, Assignment Help, Ask Question on Average propensity to save, Get Answer, Expert's Help, Average propensity to save Discussions

Write discussion on Average propensity to save
Your posts are moderated

Write your message here..

Related Questions

Expected price per product, Airbus Boeing Deman... Airbus Boeing Demand P = 182.868 - 0.0003Q P = 198.6592 - 0.00013Q TVC Curve TVC = 104.8822Q - 0.001Q^2 + 0

Explain about the equilibrium in the labor market, Explain about the equili... Explain about the equilibrium in the labor market. Equilibrium into the Labor Market: All of firm will hire labor up to the point at that the value of the marginal product o

What are significant tools of perfect competition, What are the significant... What are the significant tools of the perfect competition and the supply curve? Perfect Competition and the Supply Curve: a. In Perfect competition the characteristics of a

What is external diseconomies, Q. What is External Diseconomies? The ex... Q. What is External Diseconomies? The expansion of an industry is likely to generate external diseconomies that raise the cost of production. An increase in the size of industr

Massage therapy services, Suppose a given demand curve for massage therapy ... Suppose a given demand curve for massage therapy services. In the context of giving massage therapy services, list, and explain in detail, 5 different variables that may cause an i

Simon satisfying behaviour model, Q. Simon satisfying behaviour model? ... Q. Simon satisfying behaviour model? The behavioural approach as developed in particular by Richard Cyert and James G. March of the Carnegie School, lays emphasis on explaining

Difficulties in measuring national income, SOME DIFFICULTIES IN MEASURING N... SOME DIFFICULTIES IN MEASURING NATIONAL INCOME National Income Accounting is beset with several difficulties. These are: a.       What goods and services to include A

Illustrate internal economies of scale, Q. Illustrate Internal Economies of... Q. Illustrate Internal Economies of Scale? Internal economies of scale are the benefits of large scale production. They are enjoyed by the firm when it increases its scale of p

Using total expenditure for calculating national income, Using Total Expend... Using Total Expenditure for Calculating National Income The expenditure approach centres on the components of final demand which generate production.  It thus measures GDP

What is managerial economics according to mcgutgan and moye, What is Manage... What is Managerial economics according to McGutgan and Moye McGutgan and Moyer:  "Managerial economics is the application of economic theory and methodology to decision-making