If the average propensity to consume is 0.8, then the average propensity to save is
A)0.
B)0.2.
C)0.8.
D)1.

Name: If the average propensity to consume is 0.8, then the average propensity to save is A)0. B)0.2. C)0.8. D)1.
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Question

Quizplus · Accepted Answer

The sum of average propensity to consume and average propensity to save is always equal to 1. Therefore, if the APC is 0.8, then the APS must be 0.2 (1-0.8).

If the Average Propensity to Consume Is 0