Advertisements
Advertisements
Question
Define average propensity to consume (APC).
Solution
Average Propensity to Consume:
The average propensity to consume is the ratio of consumption expenditure to any particular level of income.” Algebraically it may be expressed as under:
Where, C = Consumption; Y = Income
APC = `C/Y`
Where, C = Consumption; Y = Income.
APPEARS IN
RELATED QUESTIONS
The average propensity to consume is measured by ______.
If the Keynesian consumption function is C=10+0.8 Y then, if the disposable income is Rs 1000, what is the amount of total consumption?
If the Keynesian consumption function is C=10+0.8Y then, when disposable income is Rs 100, what is the marginal propensity to consume?
If the Keynesian consumption function is C=10+0.8 Y then, and disposable income is ₹100, what is the average propensity to consume?
As national income increases______.
An increase in consumption at any given level of income is likely to lead to ______.
The MPC is equal to :
The sum of the MPC and MPS is _______.
As income increases, consumption will _________.
When investment is assumed autonomous the slope of the AD schedule is determined by the _____.
What is consumption function?
What do you mean by a propensity to save?
Define Marginal Propensity to Save (MPS).
State the propositions of Keynes’s Psychological Law of Consumption.
Explain any three subjective and objective factors influencing the consumption function.
Explain Keynes's psychological law of consumption function with a diagram.
