If personal disposable income is Rs. 1,000 crores and the consumption expenditure is Rs. 750 crores, calculate the average propensity to save.

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Solution

$S=Y-C = Rs. 1,000 crores - Rs. 750 crores = Rs. 250 crores$

$APS = \frac{S}{Y} = \frac{250}{1000} = 0.25$

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If personal disposable income is Rs. 1,000 crores and the consumption expenditure is Rs. 750 crores, calculate the average propensity to save.

S=Y-C = Rs. 1,000 crores - Rs. 750 crores = Rs. 250 crores APS=SY=2501000=0.25

$S=Y-C = Rs. 1,000 crores - Rs. 750 crores = Rs. 250 crores$

$APS = \frac{S}{Y} = \frac{250}{1000} = 0.25$