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Ex Ante Consumption

What is avera...

Question

What is average propensity to save?
Give the formula for its measurement.

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Solution

APS refers to Average Propensity to save which defines the amount of savings in every 1 rupee of income for all level of income. It is the ratio between the savings and income of the economy at a given point of time.
Average propensity to save= Savings/ Income.

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