Average propensity to consume, Managerial Economics

Assignment Help:

Average Propensity to Consume

The average Propensity to Consume [APC] is defined as the fraction of aggregate national income which is devoted to consumption.  If consumption is denoted by C and income by Y, then:

                                                APC = C/Y

The Average Propensity to Consume decreases in Keynes model as income increases.


Related Discussions:- Average propensity to consume

Marginal utility approach, Marginal utility approach The downward slop...

Marginal utility approach The downward sloping nature of the demand curve can be explained by using the law of diminishing marginal utility .  For instance, consider a consum

Relevance of the law of diminishing returns, Relevance of The Law of Dimini...

Relevance of The Law of Diminishing Returns The law of diminishing returns is important in that it is seen to operate in practical situations where its conditions are fulfille

Private cost and social cost, Why we need to distinguish between private co...

Why we need to distinguish between private cost and social cost?

Functions of budget, Functions of the Budget The budget fulfils three ...

Functions of the Budget The budget fulfils three main functions: To raise revenue to meet government expenditure The government of a country provides certain se

Law of association, the benefits of exchange in the light of the law of ass...

the benefits of exchange in the light of the law of association, the introduction of money in direct exchange and way income gets distributed among market participants

Appropriate management of sales, Appropriate Management of Sales: Demand f...

Appropriate Management of Sales: Demand forecasts are made area wise and after that sales targets for various areas are set in view of that. This helps the calculation of sales pe

Factors influencing supply - prices of factors of production, Prices of the...

Prices of the factors of production As the prices of those factors of production used intensively by X producers rise, so do the firms' costs. This cause supply to fall as some

Models of the firm, discuss the validity in zimbabwe of the grounds on whic...

discuss the validity in zimbabwe of the grounds on which the profit maximising model of the firm has been defended

Implications for the shape of cost function, Q. Implications for the shape ...

Q. Implications for the shape of cost function? A cost function is also a mathematical relationship, one which relates the expenses an organisation incurs on the quantity of ou

Function of money markets, Function of Money Markets The money markets...

Function of Money Markets The money markets are the place where money is "wholesaled".  As such the supply of money and interest rate which are of significance to the whole ec

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd