Question

dintinguish between average propensity to consume and marginal propensity to consume
the valur of which of these two can be greater then one and when​

Answer 1

Answer:

Average propensity to Consume refers to the ratio of Consumption Expenditure . to the corresponding level of income. Marginal propensity to consume refers to the ratio of change in Consumption Expenditure (△C) to change in total income (△Y). It can be greater than 1, equal to 1 or less than 1.