Question

Initial Disposable income = 4500, Last Disposable income = 6000, Last expenditure = 3000, Average propensity to saving in initial year = 0,4. Find the marginal propensity to saving and initial expenditure.

Answer 1

Explanation:

What Is the Average Propensity To Save? (APS)

The average propensity to save (APS) is a macroeconomic term that refers to the proportion of income that is saved rather than spent on current goods and services. Also known as the savings ratio, it is usually expressed as a percentage of total household disposable income (income minus taxes).

The inverse of APS is the average propensity to consume (APC). APS is also related to the marginal propensity to save (MPS), which expresses the proportion of a change in income that is saved rather than consumed

Answer 2

Answer:

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