If the MPC is constant at various levels of income, then the APC must also be constant at all of those
income levels.

Question

Quizplus · Accepted Answer

While the Marginal Propensity to Consume (MPC) is the change in consumption for a change in income, the Average Propensity to Consume (APC) is the ratio of total consumption to total income at various levels. A constant MPC does not imply a constant APC, as the APC can change with different levels of income even if the MPC remains the same.

If the MPC Is Constant at Various Levels of Income