Question

Identify the correctly matched pair from Column A to that of Column B:

Column A		Column B
(1)	MPC	(a)	Ratio of Savings to Consumption
(2)	APC	(b)	Ratio of Consumption to Income
(3)	APS	(c)	Ratio of Consumption to Savings
(4)	MPS	(d)	Ratio of Savings to Investment

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

2 - (b)

Explanation:

The average propensity to consume (APC) is a metric that evaluates how much of one's income is spent rather than saved.