The average propensity to save (APS), also known as the savings ratio, is an economics term that refers to the proportion of income which is saved, usually expressed for household savings as a percentage of total household disposable income. The ratio differs considerably over time and between countries. The savings ratio can be affected by (for example): the proportion of older people, as they have less motivation and capability to save; the rate of inflation, as expectations of rising prices can encourage people to spend now rather than later (monetary base/mass depreciation).
The complement is the average propensity to consume (APC).
Famous quotes containing the words average, propensity and/or save:
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—J.M. (John Millington)
“There surely is in human nature an inherent propensity to extract all the good out of all the evil.”
—Benjamin Haydon (1786–1846)
“Mad? Is it mad that you destroy other people to save yourselves? You have done this. Is it mad that one country must destroy another to save themselves? You have also done this. How then is it mad that one planet must destroy another who threatens their very existence?”
—Edward D. Wood, Jr. (1922–1978)