3. APC + APS should always be equal to 1a) False b) Depends on their values c) None of these d) True In this multiple-choice question, the focus is on the relationship between the Average Propensity to Consume (APC) and the Average Propensity to Save (APS). The correct answer would be:d) True**Explanation:**In economics, it is generally understood that the sum of the Average Propensity to Consume and the Average Propensity to Save equals 1. This is because all disposable income is either spent (consumed) or saved. Therefore, APC + APS = 1, reflecting the allocation of total income towards consumption and saving.

APC or the average prospencity to consume as the name suggests measures the percentage that…

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3. APC + APS should always be equal to 1 a) False b) Depends on their values c) None of these d) True

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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