Empirical evidence finds that the average propensity to consume is constant:
A) for only the short-run consumption function.
B) for only the long-run consumption function.
C) for both the short-run and the long-run consumption functions.
D) for neither the short-run nor the long-run consumption functions.

Question

Quizplus · Accepted Answer

Empirical evidence suggests that the average propensity to consume is constant in the long-run consumption function, as individuals adjust their consumption patterns over time to maintain a stable ratio of consumption to income.

Empirical Evidence Finds That the Average Propensity to Consume Is