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Eduncle posted an MCQ
October 19, 2019 • 21:04 pm 0 points
  • UGC NET
  • Economics

If marginal propensity to consume (m.p.c) = average propensity to consume (a.p.c) for all levels of income (Y) then the corresponding consumption function will

If marginal propensity to consume (m.p.c) = average propensity to consume (a.p.c) for all levels of income (Y) then the corresponding consumption function will be :

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    Eduncle Best Answer

     Consumption function shows functional relationship between consumption and Income.
    C = b(Y)
    where C = Consumption
    Y = National Income
    b = Functional relationship.

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