MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Ex Ante Consumption

[dummy to be ...

Question

[dummy to be removed] The propensity to save means

A

Ratio of saving to income

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

The tendency to save more

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

The tendency to save less

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
Ratio of saving to income

The marginal propensity to save gives the ratio of total additional planned savings in an economy to the total additional income of the economy.

Suggest Corrections

thumbs-up

0

Similar questions

Q. The value of average propensity to save can never be greater than 1.
True. Average propensity to save can never be greater than 1 as savings can never be more than national income.

Q. If National income is Rs. 50 crore and Saving Rs. 5 crore, find out average propensity to consume. When income rises to Rs. 60 crore and saving to Rs. 9 crore, what will be the average propensity to consume and the marginal propensity to save?

Q. Distinguish between average propensity to save and marginal propensity to save. The value of which of these two can be negative and when?

Q. What do you mean by savings ? Define average propensity to save and Marginal propensity to save.

Q. If national income is Rs. 90 crore and Consumption expenditure Rs. 81 crore, find out average propensity to save. When income rises tot 100 crore and consumption expenditure to Rs. 88 crore. What will be the marginal propensity to consume and marginal propensity to save?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Ex Ante Consumption

ECONOMICS

Watch in App

explore_more_icon

Explore more

Ex Ante Consumption

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon