One can determine the amount of any level of total income that is consumed by
A) multiplying total income by the slope of the consumption schedule.
B) multiplying total income by the APC.
C) subtracting the MPS from total income.
D) multiplying total income by the MPC.

Question

Quizplus · Accepted Answer

To determine the amount of any level of total income that is consumed, one needs to use the average propensity to consume (APC) formula, which is APC = total consumption/total income. Multiplying total income by the APC will give the amount of total income that is consumed.

One Can Determine the Amount of Any Level of Total