If the average propensity to consume is 0.75, then the average propensity to save is
A) 1.25
B) 0.25.
C) 0.75.
D) 1.33.

Name: If the average propensity to consume is 0.75, then the average propensity to save is A) 1.25 B) 0.25. C) 0.75. D) 1.33.
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Question

Quizplus · Accepted Answer

The average propensity to consume (APC) + average propensity to save (APS) always equals 1. Therefore, if APC is 0.75, then APS must be 0.25 (1 - 0.75 = 0.25).

If the Average Propensity to Consume Is 0