APC= 1-APS. It isa)Trueb)FALSEc)Depends on their valuesd)None of theseCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

The sum of the Average Propensity to Consume (APC) and Average Propensity to save (APS) is always equal to unity, i.e., APC + APS = 1. It is so because the money income can either be spent on consumption or it can be saved.

Answer

Answer should be true

Answer

Average Propensity to consumer +average Propensity to save = 1
because if (say) 1/2 of total income is spent, then the other half (1/2) of total income must be saved. ((Y=C+S))

Answer

1=Aps+APC so I can say that APC= 1-ApsOrAps= 1-ApcOrIf APC value is one then Aps is zeroAnd also Aps is one then APC is zero
It is depends upon value of APC and APS

Answer

Aps + apc = 1
when aps =0
apc = 1 - aps =1

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It is true so answer should be d

Answer

Ha

Answer

False

Answer

Answer is true
Why 1

Answer

2

Answer

Why 1

Answer

Situation 1:
APC = 1-APS
APS = 0
(at the level when APS become 0)
APC = 1
Therefore , the correct answer is option 'A'
Situation 2:
the correct answer is option 'B'
it happens according to the situations (depends on consumers savings)

Answer

Explanation:

The given equation is APC = 1 - APS, where APC represents Average Propensity to Consume and APS represents Average Propensity to Save.

Meaning of APC and APS:
- Average Propensity to Consume (APC): It is the ratio of consumption expenditure to the total income of an individual or a household. It represents the proportion of income that is spent on consumption.
- Average Propensity to Save (APS): It is the ratio of saving to the total income of an individual or a household. It represents the proportion of income that is saved.

Interpretation of the Equation:
The equation APC = 1 - APS implies that the average propensity to consume and the average propensity to save are complementary to each other. In other words, they add up to 1.

Proof:
To understand why this equation holds true, let's consider the following:

1. APC + APS = 1:
- The average propensity to consume (APC) and the average propensity to save (APS) are defined as ratios of income.
- Since income can either be consumed or saved, the sum of APC and APS should be equal to 1.

2. APC = 1 - APS:
- Rearranging the above equation, we get APC - APS = 1.
- If we substitute APS with (1 - APC) in this equation, we get APC - (1 - APC) = 1.
- Simplifying further, we get APC - 1 + APC = 1.
- Combining like terms, we get 2APC - 1 = 1.
- Adding 1 to both sides, we get 2APC = 2.
- Dividing both sides by 2, we get APC = 1.

Therefore, we can conclude that APC = 1 - APS is true.

Summary:
The equation APC = 1 - APS holds true because the average propensity to consume and the average propensity to save are complementary to each other. They add up to 1, representing the entire income of an individual or a household.

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