JAMB - Economics (2020 - No. 11)
If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
0.20
0.80
1.25
2.00
Forklaring
The average propensity to consume (APC) measures the percentage of income that is spent rather than saved.
The formular is gotten as: APC = C / DI
Income = 500
consumption = 400
\(\frac{400}{500}\) = 0.8