Kavita Asked a Question
September 7, 2020 1:12 pmpts 5 pts
UILy 14 If Marginal Propensity to Consume (MPC) Average Propensity to Consume (APC) for all levels then of Income (Y), the corresponding consunmption function will be (a) C= a+ bY lc) C=bY (b) C=bY (d) C = a +bY
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  • Nidhi taparia thankyou
    The answer will be (b) C = bY. This is because when APC and MPC are equal, this means the consumption curve passes through the origin. The equation of such a curve is always of th...
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