The _____ is a macroeconomic term that refers to the proportion of income that is saved rather than spent on current goods and services.

Correct option is B

The correct answer is (b) Average propensity to save.
Explanation:

• Average propensity to save (APS) refers to the proportion of total income that is saved rather than spent on consumption. It is calculated by dividing total savings by total income. $$APS = \frac{\text{Total Savings}}{\text{Total Income}}$$​​
  
•  Marginal propensity to save (MPS), on the other hand, refers to the change in savings resulting from a change in income. It's the ratio of the change in savings to the change in income. $$MPS = \frac{\Delta \text{Savings}}{\Delta \text{Income}}$$​​
  
•  Marginal propensity to consume (MPC) and Average propensity to consume (APC) deal with consumption rather than savings, where MPC refers to the change in consumption per change in income, and APC refers to the total consumption divided by total income.

Thus, the term that refers to the proportion of income saved is (b) Average propensity to save.