Question

10. The ratio between the change in consumption expenditure with the
change in income level is called
and the ratio between change
in savings with respect to change in income level is​

Answer 1

Answer:

(i) Average Propensity to Consume (APC) : The ratio between the consumption expenditure and income is called Average Propensity to Consume. (ii) Marginal Propensity to Consume (MPC) : The ratio between the change in consumption expenditure with change in income is called Marginal Propensity to Consume.

Explanation:

hope it helps

Answer 2

Answer:

The answer is MPC and MPS

Explanation:

MPC (Marginal propensity to consumer) refers to show the relationship between the change in consumption and change in income.

It show the ratio between the change in consumption to change in income

MPS (Marginal propensity to save) refers to show the relationship between the change in saving and change in income

It shows the ratio between the change in saving to change in income.

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