what-is-the-likely-effect-on-the-average-propensity-to-consume-if-disposable-inc

Question

What is the likely effect on the average propensity to consume if disposable income increases significantly?

Accepted Answer

The average propensity to consume is likely to decrease.

Answer

The average propensity to consume is likely to increase.

Answer

The average propensity to consume will remain unchanged.

Answer

The average propensity to consume will become negative.