how-does-disposable-income-influence-the-average-propensity-to-consume

Question

How does disposable income influence the average propensity to consume?

Accepted Answer

Higher disposable income generally decreases the average propensity to consume.

Answer

Disposable income is irrelevant to the average propensity to consume.

Answer

Higher disposable income generally increases the average propensity to consume.

Answer

Disposable income only affects the average propensity to save.