If the APS is .1 and the MPC is .85,the APC is

A) .1.
B) .15.
C) .85.
D) .9.
E) Impossible to determine.

Question

If the APS is .1 and the MPC is .85,the APC isA) .1.B) .15.C) .85.D) .9.E) Impossible to determine.

Tiahna James · Accepted Answer

Final Answer : D, Explanation :  The APC (Average Propensity to Consume) can be calculated as 1 - APS (Average Propensity to Save), so if APS is .1, then APC = 1 - .1 = .9.

If the APS is .1 and the MPC is .85,the APC is

A) .1.
B) .15.
C) .85.
D) .9.
E) Impossible to determine.

Definitions

Learning Objectives

Learning Objectives

Related questions