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Which of the Following Correctly Defines the Average Propensity to Consume

Question 88

Multiple Choice

Which of the following correctly defines the average propensity to consume (APC) ?


A) Change in planned consumption divided by change in real disposable income
B) Planned consumption divided by real disposable income
C) Real disposable income divided by planned consumption
D) Change in real disposable income divided by change in planned consumption

Correct Answer:

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