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Question : Given that national income is Rs.100 crore and consumption expenditure is Rs.72 crore, When income rises to Rs. 200 crore and consumption expenditure to Rs. 108 crore, what will be the average propensity to consume at intial level.

Option 1: 0.28

Option 2: 0.72

Option 3: 0.33

Option 4: None of the above.


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: 0.72


Solution : APC= \frac{Consumption}{Income}

APC= \frac{72}{100}

Hence, \, Option \, B \, is\, correct.

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