Fred's consumption purchases fall from $140 000 in 2011 to $100 000 in 2012,as his disposable income falls from $200 000 in 2011 to $150 000 in 2012.Which of the following statements about Fred's consumption is accurate?
A)Fred's APC in 2012 equals 0.7.
B)Fred's MPC equals 0.8.
C)Fred's APC was higher in 2012 than in 2011.
D)Fred's MPC equals 0.7.

Question

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The Answer of Fred's consumption purchases fall from $140 000 in 2011 to $100 000 in 2012,as his disposable income falls from $200 000 in 2011 to $150 000 in 2012.Which of the following statements about Fred's consumption is accurate?
A)Fred's APC in 2012 equals 0.7.
B)Fred's MPC equals 0.8.
C)Fred's APC was higher in 2012 than in 2011.
D)Fred's MPC equals 0.7.

Fred's Consumption Purchases Fall from $140 000 in 2011 to $100