One can determine the amount of consumption at any level of total income by:
A)multiplying total income by the slope of the consumption schedule.
B)multiplying total income by the APC.
C)subtracting the MPS from total income.
D)multiplying total income by the MPC.

Question

Quizplus · Accepted Answer

The Average Propensity to Consume (APC) is the ratio of consumption to total income, so multiplying total income by the APC gives the amount of consumption.

One Can Determine the Amount of Consumption at Any Level