Mike's annual income is $35,000,and he spends $30,800 for current needs.Mike's average propensity to consume is 80%.

Name: Mike's annual income is $35,000,and he spends $30,800 for current needs.Mike's average propensity to consume is 80%.
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Question

Quizplus · Accepted Answer

The average propensity to consume is calculated by dividing total consumption by total income. In this case, $30,800 divided by $35,000 equals approximately 88%, not 80%.

Mike's Annual Income Is $35,000,and He Spends $30,800 for Current