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What happens to average propensity to consume (APC) as income increases?
  • a)
    APC increases.
  • b)
    APC decreases.
  • c)
    APC remains constant.
  • d)
    APC becomes zero.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What happens to average propensity to consume (APC) as income increase...
In many cases, as income increases, the average propensity to consume (APC) tends to decrease. This means that as people earn more, they tend to save a larger proportion of their income.
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What happens to average propensity to consume (APC) as income increases?a)APC increases.b)APC decreases.c)APC remains constant.d)APC becomes zero.Correct answer is option 'B'. Can you explain this answer?
Question Description
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