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Help with macro?

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If disposable income = $200 billion and the APS = 0.9, then

savings = $90 billion.

savings = $45 billion.

savings = $180 billion.

savings cannot be determined.

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1 ANSWERS


  1. Average Propensity to Save implies that of a certain amount of disposable income, the APS is the proportion of disposable income saved, therefore 0.9 x 200 = $180bn.

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