Explain Average Propensity to Consume.

1.	Explain Average Propensity to Consume.
Answer» In an economy, the part of income consumed by the whole society is called Average Propensity to Consume. It is that part of income which is spent of consumption. Formula: Average propensity to consume (APC) =C/Y = Quantity of consumption/Quantity of income.

Answer»

In an economy, the part of income consumed by the whole society is called Average Propensity to Consume. It is that part of income which is spent of consumption.

Formula: Average propensity to consume (APC) =C/Y = Quantity of consumption/Quantity of income.

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Explain Average Propensity to Consume.

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