Which of the Following Correctly Defines the Average Propensity to Consume

question 343

Multiple Choice

Which of the following correctly defines the average propensity to consume (APC) ?

• A) Change in planned consumption divided by change in real disposable income
• B) Planned consumption divided by real disposable income
• C) Real disposable income divided by planned consumption
• D) Change in real disposable income divided by change in planned consumption

---

Definitions:

Factorial ANOVA

A statistical test used to evaluate the difference between the means of three or more groups based on two or more factors.

Independent Variable

A variable in an experimental or observational study that is manipulated or categorized to observe its effect on dependent variables.

Interaction Effect

In statistics, the effect that occurs when the impact of one independent variable on a dependent variable varies depending on the level of another independent variable.

Independent Variable

The variable that is manipulated or changed in an experiment to see its effects on the dependent variable.