Equations Flashcards
1
Q
How do you calculate average propensity to consume (APC)?
A
Consumption expenditure / disposable income
2
Q
What is disposable income?
A
(after tax) income
3
Q
How do you calculate average propensity to save (APS)
A
Savings / Disposable income
4
Q
How do you calculate Marginal propensity to consume (MPC)
A
Change in consumption / change in income
5
Q
How do you calculate Marginal propensity to save(MPS)
A
Change in saving / change in income
6
Q
What does APC + APS equal to
A
1
7
Q
What does MPC + MPS equal to
A
1
