The Average Propensity to Consume (APC) Equals

question 95

Multiple Choice

The average propensity to consume (APC) equals

• A) real disposable income divided by consumption expenditures.
• B) consumption expenditures divided by real disposable income.
• C) the change in consumption expenditures divided by the change in real disposable income.
• D) the change in real disposable income divided by the change in consumption expenditures.

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Definitions:

Attitude Change

A change in a person’s attitudes about some issue, person, or situation.

Low Levels

Conditions or quantities that are minor, reduced, or below average, often indicating a lack of intensity, severity, or concentration.

Five Factor Model

A personality model that suggests five broad dimensions are sufficient to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Agreeableness

A personality trait characterized by qualities such as being kind, cooperative, and sympathetic towards others.