Question: Read the following statements carefully : Statement 1 : Average Propensity to Consume (APC) represents the change in total income with respect to a given

Read the following statements carefully : Statement 1 : Average Propensity to Consume (APC) represents the change in total income with respect to a given change in total consumption. Statement 2 : When income changes, change in consumption (DC) can never exceed the change in income (DY). In the light of the given statements, choose the correct alternative from the following : (A) Statement 1 is true and Statement 2 is false. (B) (C) (D) Statement 1 is false and Statement 2 is true. Both Statements 1 and 2 are true. Both Statements 1 and 2 are false.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below Analysis of Statements To evaluate the truthfulness of the statements regarding Average P... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

1.________________ is one of the Macroeconomics objectives from the Islamic perspective. Select one: a.Al-Wadiah b.Al-Bai Bithaman Ajil c.Al-Ijarah d.Universal education 2.What is the benefit to...

' n-A TRLJEJEALSE Questions (maximum 21 marks) 1) If disposable income (DI) is 275 billion and the average propensity to consume (APC) is 0.8. it can be concluded that saving is 55 billion. For a...

Need help with thisPlease enter answer when *** is and also number 4&7 Question 12. Keynesian Model for the Closed Economy with no Government Participation. The data in this table represents a Model...

Below are the following questions. Kindly Answer honestly and with integrity. Thank you Chapter 11: Keynesianism Chapter Overview: John Maynard Keynes was the greatest and most influential economist...

Answer these following questions please. The Aggregate Expenditures Models (48 marks) A/ Consider the Closed Economy with no Government Participation Planned Expenditures: AE = C + 1 Consumption: C =...

Answer tje following explaining each quiz... 42. 43. 44. 45. 46. 4?. 43. With respect to consumption, investment, government purchases and net exports, the national income accounts measure a. actual...

Chapter 6: FIXED BLUR Question 1 {1 point] / Saved Consider the following news headline: "Canadian business leaders fear reduced world demand for commodities". 1v'v'hich of the following correctlv...

Topic 3.1 - Aggregate Demand (AD) 13. Canadians buy more Arnericanmade cars 14. Lower interest rates affect investment L L Part 3 - Making Connections- Read the quote regarding the Great Recession...

PART B : Multiple choice questions (5 points each, total 30 points) 1) Cyclical unemployment occurs when: (a) workers and firms take time to find suitable matches of workers to jobs. (b) there is a...

Please answer me page 51 to page 56 on the attachment. is a multiple choice questions. Thank you FAC1502/101/3/2016 Tutorial letter 101/3/2016 Financial accounting concepts, principles and procedures...

You must be careful about money. Lottery winners sometimes think they are millionaires when they're not really as rich as they think. Furthermore, there are enormous income taxes to be paid. But in...

Determine which x satisfy the inequality: x + 3 + x - 4 - |x| 5

should a large gain on sale of investment securities be included in a companies permanent earnings

Free cash flow valuation You are evaluating the potential purchase of a small business with no debt or preferred stock that is currently generating $ 4 2 , 7 0 0 of free cash flow ( F C F 0 = $ 4 2 ,...