The table given below reports the consumption expenditure of a nation at different levels of disposable income.?

-Refer to Table 9.1. At an income level of $10,000, the APS equals -0.20. Therefore, the APC has to be equal to:
A) 0.20.
B) 0.80.
C) -1.20.
D) 1.20.
E) 1.80.

Question

The table given below reports the consumption expenditure of a nation at different levels of disposable income.?
 
-Refer to Table 9.1. At an income level of $10,000, the APS equals -0.20. Therefore, the APC has to be equal to:
A) 0.20. 
B) 0.80. 
C) -1.20. 
D) 1.20. 
E) 1.80.

Quizplus · Accepted Answer

The sum of the Average Propensity to Save (APS) and the Average Propensity to Consume (APC) must equal 1. If APS is -0.20, then APC must be 1 - (-0.20) = 1.20.

The Table Given Below Reports the Consumption Expenditure of a Nation