GK
BUSINESS ECONOMICS
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Question
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APC is equal to
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1-APS
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1 / APS
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1-MPS
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Consumption / Income
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Explanation:
Detailed explanation-1: -The formula for average propensity to consume is as follows: Average Propensity to Consume = Consumption/Total Disposable Income. Thus, abbreviated as APC = C / DI.
Detailed explanation-2: -Average propensity to consume= Consumption/ Income. Was this answer helpful?
Detailed explanation-3: -The average propensity to consume (APC) is a ratio that measures the portion of a household’s income that’s spent on goods and services rather than being saved. Knowing the average propensity to consume is helpful for economists who monitor national spending patterns and behaviors.
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