Assuming that Yd = $10,000 and C = $12,000, we would find that the average propensity to consume would be equal to
A) 0.9.
B) 1.2.
C) 1.1.
D) 0.8.

Name: Assuming that Yd = $10,000 and C = $12,000, we would find that the average propensity to consume would be equal to A) 0.9. B) 1.2. C) 1.1. D) 0.8.
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Quizplus · Accepted Answer

The average propensity to consume (APC) is calculated as consumption (C) divided by disposable income (Yd), which in this case is $12,000 / $10,000 = 1.2.

Assuming That Yd = $10,000 and C = $12,000, We