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In Keynesian economics, the average propensity to save , also known as the savings ratio, is the proportion of income which is saved, usually expressed for household savings as a fraction of total household disposable income.
A P S = S Y {\displaystyle APS={\frac {S}{Y}}}
The ratio differs considerably over time and between countries. The savings ratio for an entire economy can be affected by the proportion of older people , and the rate of inflation or current interest rates.APS can express the social preference for investing in the future over consuming in the present.The complement is the average propensity to consume.
Low average propensity to save might be the indicator of a large percentage of old people or high percentage of irresponsible young people in the population.With income level changes, APS becomes an inexact tool for measuring these changes. So, the marginal propensity to save is used in these cases.