-Use the above table. Which of the following is TRUE if real disposable income is $150?
A) APC is less than MPC.
B) APC = 0.8.
C) APS = 0.2.
D) APS is less than MPS.

Name: -Use the above table. Which of the following is TRUE if real disposable income is $150? A) APC is less than MPC. B) APC = 0.8. C) APS = 0.2. D) APS is less than MPS.
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Question

-Use the above table. Which of the following is TRUE if real disposable income is $150?
A) APC is less than MPC. 
B) APC = 0.8. 
C) APS = 0.2. 
D) APS is less than MPS.

Quizplus · Accepted Answer

APS is less than MPS because APS is the average propensity to save, which is typically lower than the marginal propensity to save (MPS) when income increases.

-Use the Above Table