Question

if APC is 0.6 APS will be----​

Answer 1

Answer:

0.4

Explanation:

Average propensity to consume (APC) is the ratio of consumption expenditure (C) and income (Y), which indicates the average percentage of income that is spent on consumption. It can be algebraically expressed as:

APC = \frac{C}{Y}

APC=

Y

C

.

Average propensity to save (APS) is the ratio of saving (S) and income(Y), expressing the average percentage of income that is saved. It is algebraically written as:

APS = \frac{S}{Y}

APS=

Y

S

.

APC+ APS

APC+APS

= \frac{C}{Y} + \frac{S}{Y}

=

Y

C

+

Y

S

=\frac{C+S}{Y}

=

Y

C+S

=\frac{Y}{Y}

=

Y

Y

= 1

APC+APS= 1

APC+APS=1

APC= 1 - APS = 1 - 0.6= 0.4

APC=1−APS=1−0.6=0.4

Answer 2

If APC is 0.6 APS will be 0.4

Explanation:

The APC refers to the average propensity to consume that shows a relationship between the consumption expenditure and the income

While the APS refers to the average propensity to save that reflects the relationship between the saving and the income

Plus we also know that

APC + APS = 1

The sum of the APC and the APS is equal to one

So,

APS equal to

= 1 - APC

= 1 - 0.6

= 0.4

   

Learn more

If APS=0.5,then APC=?​

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