Average propensity to save, Managerial Economics

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

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