Question As aggregate income decreases, the APC: will decrease, but the APS will increase. and APS will both increase.Incorrect and APS will both decrease. will increase, but the APS will decrease.

WLNAQO The Asker · Economics

As aggregate income decreases, the APC:

  • will decrease, but the APS will increase.

  • and APS will both increase.Incorrect

  • and APS will both decrease.

  • will increase, but the APS will decrease.

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Community Answer
IBX6E0

APC will increase but APS will decrease as aggregate income decreases. The average propensity to consume (APC) measures the percentage of income that is spent rather than saved. The average propensity to save (APS) is a macroeconomic term that refers to the proportion of income that is saved rather than spent on curren ... See the full answer