what is the proportion of saved disposable income called 
the proportion of saved disposable income is known as the average propensity to save aps it is also called the savings ratio this refers to the proportion of a population s overall income that is saved rather than spent to calculate the aps ratio divide total savings by disposable after tax income the bottom linedisposable income is money that remains to be used after all taxes are paid all products and services including rent or mortgage payments food and utilities come out of disposable income what is left over for wants as opposed to needs is known as discretionary income in a society as a whole when disposable income increases people spend or save more leading to a growth in overall consumption consumer spending is one of the most important measures of demand in turn driving business expansion and the creation of jobs 