The ratio of total consumption to total income is known as:

CA Foundation · Business Economics · PYQS · January 2025
The ratio of total consumption to total income is known as:
(A) A. Average Propensity to Consume (APC)
(B) B. Marginal Propensity to Consume (MPC)
(C) C. Saving function
(D) D. Income function

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Average Propensity to Consume (APC)

Topics: Determination of National Income

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