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:
“Public opinion, a vulgar, impertinent, anonymous tyrant who deliberately makes life unpleasant for anyone who is not content to be the average man.”
—W.R. (William Ralph)
“The propensity to truck, barter and exchange one thing for another ... is common to all men, and to be found in no other race of animals.”
—Adam Smith (1723–1790)
“Whate’er she meant by it, bury it with me,
For since I am
Love’s martyr, it might breed idolatry,
If into others’ hands these Reliques came;
As ‘twas humility
To afford to it all that a Soul can do,
So, ‘tis some bravery,
That since you would save none of me, I bury some of you.”
—John Donne (1572–1631)