Practicing Success
Which of the following is correct in regards to "Propensity to save"? |
It refers to the surplus income which is not be saved Tendency of an individual towards higher saving Level of income where demand is equal to supply Ratio of saving to income |
Ratio of saving to income |
Ratio of saving to income is called propensity to save. Marginal propensity to save refers to the ratio of change in savings to change in income. |