The following question are based on the following information for a society:

-If disposable income is $1,800 billion,the average propensity to consume is
A) 0.8.
B) 0.84.
C) 0.92.
D) 1.00.
E) 1.08.

Question

The following question are based on the following information for a society:
 
-If disposable income is $1,800 billion,the average propensity to consume is
A) 0.8. 
B) 0.84. 
C) 0.92. 
D) 1.00. 
E) 1.08.

Quizplus · Accepted Answer

The average propensity to consume (APC) is calculated by dividing total consumption by total disposable income. If the APC is 0.92, it means that 92% of the disposable income is spent on consumption.

The Following Question Are Based on the Following Information for a Society