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Question
Which of the following is the correct formula for Average Propensity to Consume?
Options
APC = Y/C
APC = ΔC/ΔY
APC = C/Y
APC = C − Y
MCQ
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Solution
APC = C/Y
Explanation:
APC is defined as the ratio of total consumption expenditure (C) to total income (Y), i.e., APC = C/Y.
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