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average propensity to save
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average propensity to save

economics
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In economics, the propensity to save refers to the proportion of income that consumers choose to save rather than spend. The average propensity to save is calculated as total saving divided by total income. The marginal propensity to save is the ratio of a change in saving to a change in income. This concept is closely related to the propensity to consume, with the sum of the propensity to consume and the propensity to save always equaling one. Understanding saving behavior is crucial as it influences the national supply of capital and impacts an economy's long-term productive capacity.12

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