If consumption increases while income remains the same, the average propensity to consume will
A) increase and then decrease.
B) remain constant.
C) increase.
D) decrease.

Question

Quizplus · Accepted Answer

Average propensity to consume (APC) is defined as the ratio of consumption expenditure to income. If consumption increases while income remains constant, the APC will increase. This means that a greater proportion of income is being spent on consumption.

If Consumption Increases While Income Remains the Same, the Average