If the Keynesian consumption function is written as $C = \bar { C } + C Y$ then the average propensity to consume is:
A) c.
B) $\bar { C }$
C) $\bar{C} / Y+C$

D) $\bar { C } + c / Y$

Question

If the Keynesian consumption function is written as $C = \bar { C } + C Y$ then the average propensity to consume is:
A) c.
B) $\bar { C }$
C) $\bar{C} / Y+C$

D) $\bar { C } + c / Y$

Quizplus · Accepted Answer

The average propensity to consume (APC) is calculated as total consumption (C) divided by total income (Y), which is $(\bar{C} + cY) / Y = \bar{C} / Y + c$.

If the Keynesian Consumption Function Is Written As C=Cˉ+CYC = \bar { C } + C YC=Cˉ+CY

If the Keynesian Consumption Function Is Written As $C = \bar { C } + C Y$