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APC + APS = ?
?
2
1
0
- APC (Average Propensity to Consume) is the ratio of total consumption to total income (APC = C/Y).
- APS (Average Propensity to Save) is the ratio of total savings to total income (APS = S/Y).
- By definition, all income is either consumed or saved, so APC + APS = 1.
- Let's examine the options:
- ?Option:1 (Not clear)
- ?Option:2 (Not clear)
- 2Option:3 (Not clear)
- 1Option:4 (Possibly 1)
- 0 (Possible answer)
Correct Answer: Option:4 - 1 is correct.
APC + APS always equals 1, because every unit of income is either spent or saved.
By: santosh ProfileResourcesReport error
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