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In a non-linear consumption function, what happens to average propensity to save (APS) as income increases?
  • a)
    APS increases.
  • b)
    APS decreases.
  • c)
    APS remains constant.
  • d)
    APS becomes zero.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
In a non-linear consumption function, what happens to average propensi...
In a non-linear consumption function, as income increases, the average propensity to save (APS) tends to increase. This means that as income rises, a larger proportion of income is saved rather than consumed.
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In a non-linear consumption function, what happens to average propensity to save (APS) as income increases?a)APS increases.b)APS decreases.c)APS remains constant.d)APS becomes zero.Correct answer is option 'A'. Can you explain this answer?
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