Average propensity to consume, Managerial Economics

Average Propensity to Consume

The average Propensity to Consume [APC] is defined as the fraction of aggregate national income which is devoted to consumption.  If consumption is denoted by C and income by Y, then:

                                                APC = C/Y

The Average Propensity to Consume decreases in Keynes model as income increases.

Posted Date: 11/28/2012 6:23:34 AM | Location : United States

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