Asked by Julia Little on May 09, 2024
Verified
If the APC is .6,we consume
A) 4 percent of our income.
B) 6 percent of our income.
C) 40 percent of our income.
D) 60 percent of our income.
APC
Usually refers to Average Propensity to Consume, which is the fraction of income spent on consumption rather than saved.
Income
Money received, especially on a regular basis, for work or through investments, constituting the financial resource available to individuals or entities for expenditure or investment.
- Gain insight into the theories regarding Average Propensity to Consume (APC) and Average Propensity to Save (APS).
Verified Answer
MW
Melisa WhyteMay 12, 2024
Final Answer :
D
Explanation :
The Average Propensity to Consume (APC) is the fraction of income spent on consumption. If the APC is .6, it means 60 percent of our income is consumed.
Learning Objectives
- Gain insight into the theories regarding Average Propensity to Consume (APC) and Average Propensity to Save (APS).