At break even point ( i.e ,C=Y) ,what would be the value of Average Propensity to Save (APS)?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: zero
At break even point i.e. Y=C we would be having zero savings as, Y=C+S and Y=C then S = 0.
APS= \(\frac{ S}{ Y}\),
APS= \(\frac{0 }{Y }\)
=0
Therefore, At breakeven point APS is 0.