When income increases and APC decreases, it indicates that:

CA Foundation · Business Economics · MTP · January 2026
When income increases and APC decreases, it indicates that:
(A) A. Autonomous consumption is increasing
(B) B. Marginal propensity to consume is increasing
(C) C. Consumption is growing slower than income
(D) D. Savings are falling

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Consumption is growing slower than income

Topics: Determination of National Income

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