Question

The average propensity to save is equal to

• A. $\frac{\Delta Y}{\Delta S}$
• B. $\frac{Y}{S}$
• C. $\frac{\Delta S}{\Delta Y}$
• D. $\frac{S}{Y}$

Answer 1

The correct option is D

$\frac{S}{Y}$

The average propensity to save equals the ratio of total saving to total income.