Q. 34.6( 9 Votes )

Average Propensit

Answer :

Average propensity to consume is the ratio between total consumption expenditure and income. The formula to calculate APC


APC=C/Y


Average Propensity to Consume can never be zero. Average Propensity to Consume can zero only when consumption becomes zero. Average propensity to consume can be zero because at zero level of national income there will be autonomous consumption.

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