As disposable income goes up the:
A)APC falls.
B)APS falls.
C)volume of consumption declines absolutely.
D)volume of investment can be expected to diminish.

Question

Quizplus · Accepted Answer

As disposable income goes up, the average propensity to consume (APC) falls, because people tend to save more of their extra income rather than spending it all. Therefore, the proportion of income that is consumed (APC) decreases as disposable income increases.

As Disposable Income Goes Up The