Question

Write the formula for Average Propensity to Save.

Answer 1

Answer:

Calculating Average Propensity to Save

The formula to calculate APS is total savings divided by income level for which we want to determine APS. For example, if the income level is 100 and total savings for that level is 30, then APS is 30/100 or 0.3. APS can never be 1 or greater than 1.