which-of-the-following-best-describes-the-difference-between-average-propensity-

Question

Which of the following best describes the difference between average propensity to consume (APC) and marginal propensity to consume (MPC)?

Accepted Answer

APC measures total consumption relative to total income, while MPC measures the change in consumption relative to a change in income.

Answer

APC measures the change in consumption relative to a change in income, while MPC measures total consumption relative to total income.

Answer

APC and MPC both measure total consumption relative to total income.

Answer

APC and MPC both measure the change in consumption relative to a change in income.