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Average propensity to consume is defined...

Average propensity to consume is defined as

A

Aggregate consumption + Total population

B

Aggregate income + Aggregate income `div` Aggregate consumption

C

Change in consumption `div` Change in income

D

Aggregate consumption `div` Aggregate income

Text Solution

Verified by Experts

The correct Answer is:
D
In economics , the average propensity to consume (APC) is defined as the ratio of aggregate income in a given period of time. Thus, the value of average propensity to consume, for any income level, may be found by dividing consumption by income.
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