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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
wHAT IS THE SIGNIFICANCE OF EXPECTATION ELASTICITY ?
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WHAT ARE THE FORMS OF COST FUNCTIONS?
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