Question

Average Propensity to Consume is equal to:

Options

• `"C"/"Y"`

• C − Y

• `(Δ"C")/(Δ"Y")`

• ΔY − ΔC

Answer 1

`"C"/"Y"`

Explanation:

The average propensity to consume is a measure of how much money is spent rather than saved. It defined the amount of consumption for each ₹1 of income across all income levels.