Question

If income changes from 3000 to 4500 and saving changes from 600 to 900, then calculate APS?

• A. 0.2
• B. 0.33
• C. 0.13
• D. 0.25

Answer 1

The correct option is A 0.2

APS $=\frac{Savings}{Income}$

We can calculate APS for both time period.

In the first time period, S = 600 and Y = 3000.

APS = $\frac{600}{3000}=$ $0.2$

In the second time period, S = 900 and Y = 4500.

APS = $\frac{900}{4500}=$ $0.2$