The fraction,or percentage,of disposable income that is consumed is called the

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The fraction or percentage of disposable income that is consumed is called the average propensity to consume (APC). Choice A, break-even income, is a term used in finance to describe the level of revenue needed to cover all fixed and variable expenses. Choice B, consumption schedule, refers to a table that shows the amounts households plan to spend for goods and services at different income levels. Choice C, marginal propensity to consume (MPC), refers to the change in consumption resulting from a change in income. Choice E, marginal propensity to save (MPS), refers to the change in saving resulting from a change in income.

The Fraction,or Percentage,of Disposable Income That Is Consumed Is Called