Regarding Average Propensity to save :
(A) APS can be zero
(B) APS can be more than one
(C) APS can be negative
(D) APS can be one
(E) APS can be positive
Choose the correct answer from the options given below :
(
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Shift 01/06/2023 8:30 AM - 11:30 AM
Correct Answer
Detailed Explanation
Regarding Average Propensity to Save (APS):
(A) APS can be zero: True. If an individual's saving equals their income, APS will be zero.
(B) APS can be more than one: False. APS is a ratio, and it cannot be greater than one. It represents the proportion of income saved, so it is always between 0 and 1.
(C) APS can be negative: False. By definition, APS is a measure of savings as a proportion of income. It cannot be negative.
(D) APS can be one: True. If an individual's saving equals their income, APS will be one.
(E) APS can be positive: True. APS is positive when an individual saves some portion of their income.
So, the correct answer is (1) (A), (C), (E) Only.
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