Asked by
Maximo Aristy
on Nov 30, 2024
Verified
If the APC is 1.1,the APS is
A) -0.1.
B) 0.
C) 0.1.
D) 0.9.
APC
It stands for Average Propensity to Consume, indicating the fraction of income that is spent on consumption rather than savings.
APS
Average Propensity to Save, which is the fraction of income that is saved rather than spent on consumption, calculated as savings divided by disposable income.
- Apprehend the basic principles of Average Propensity to Consume (APC) and Average Propensity to Save (APS).
- Master the mathematical interactions between APC and APS, particularly their inversely proportional linkage.
Verified Answer
AA
Learning Objectives
- Apprehend the basic principles of Average Propensity to Consume (APC) and Average Propensity to Save (APS).
- Master the mathematical interactions between APC and APS, particularly their inversely proportional linkage.