If you know the average propensity to consume you can determ

If you know the average propensity to consume you can determine the average propensity to save. How is that possible?

Solution

The average propensity to consume is the ratio of consumption to income and the average propensity to save is the ratio of savings to income. The relation between the APS and APC is these two are equal to one. If the APC is .5 and the APS should be also .5. And if the APS is .8 and the APC should be .2.

APC+APS=1.

1-APS=APC.

1-APC=APS.

If you know the average propensity to consume you can determine the average propensity to save. How is that possible?SolutionThe average propensity to consume i

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