If your income is $35,000 and the average propensity to save is 0.46, what is consumption?
A) $16,100
B) $18,900
C) $15,500
D) $19,500

Name: If your income is $35,000 and the average propensity to save is 0.46, what is consumption? A) $16,100 B) $18,900 C) $15,500 D) $19,500
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Quizplus · Accepted Answer

The average propensity to save (APS) is 0.46, meaning 46% of income is saved. Therefore, 54% of income is consumed. Consumption = 0.54 * $35,000 = $18,900.

If Your Income Is $35,000 and the Average Propensity to Save