The Average Propensity to Consume Can Be Defined as Income

question 184

True/False

The average propensity to consume can be defined as income divided by consumption.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current market prices.

Probable Future Sacrifices

The expected relinquishment of assets as a result of obligations.

Liabilities

Economic obligations or debts owed by a business to others, typically arising in the course of its operations.