Question

In an economy the ratio of APC and APS is 5:3. The level of Income is Rs 6000. How much are Savings , Calculate.

Answer 1

APC : APS = 5:3 

Consumption = (5/8) x 6000 

= 3750 

And Savings = 6000 - 3750 = 2250 

Alternatively; (3/8) x 6000 = 2250