If we save 20 percent of our income,our APC isA) -0.2.B) 0.C) 0.2.D) 0.8.E) 1.2.

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Lizette Hernandez · Accepted Answer

Final Answer : D, Explanation :  APC (Average Propensity to Consume) is calculated as the fraction of income spent on consumption. If 20 percent of income is saved, then 80 percent (100% - 20%) is spent on consumption, making the APC 0.8.

If we save 20 percent of our income,our APC is

A) -0.2.
B) 0.
C) 0.2.
D) 0.8.
E) 1.2.

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