ECONOMICS
AGGREGATE DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
750
|
|
|
0.75
|
|
|
450
|
|
|
0.45
|
Detailed explanation-1: -Answer: 750 is the correct answer according to me.
Detailed explanation-2: -Average propensity to consume is calculated by dividing an entity’s consumption by the entity’s total income. It is a ratio between what is spent and what is earned.
Detailed explanation-3: -The average propensity to consume or APC represents the ratio of total consumption to total income.
Detailed explanation-4: -The average propensity to consume (APC) is the ratio of consumption expenditures (C) to disposable income (DI), or APC = C / DI. The average propensity to save (APS) is the ratio of savings (S) to disposable income, or APS = S / DI.
Detailed explanation-5: -Definition. The average propensity to consume (APC) is a ratio that measures the portion of a household’s income spent on goods and services rather than being saved.