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Q: average propensity ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: average propensity
Category: Business and Money > Economics
Asked by: skeeter1-ga
List Price: $2.00
Posted: 08 May 2003 09:33 PDT
Expires: 07 Jun 2003 09:33 PDT
Question ID: 201168
The average propensity to consume is consumpton:
a. ivided by disposable income.
b. divide by saving
c. multiplied times savings.
d. multiplied times investment

which is the answer?
Answer  
Subject: Re: average propensity
Answered By: tutuzdad-ga on 08 May 2003 09:59 PDT
Rated:5 out of 5 stars
 
The answer is "A": divided by disposable income

http://economics.about.com/library/glossary/bldef-average-propensity-to-consume.htm

"Definition of Average Propensity to Consume: The average propensity
to consume is the proportion of income the average family spends on
goods and services."

Therefore, the average propensity to consume is consumption divided by
disposable income.

regards;
tutuzdad-ga
skeeter1-ga rated this answer:5 out of 5 stars

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