In macroeconomics the average propensity to consume apc and


Question: In macroeconomics the average propensity to consume (APC) and the marginal propensity to consume (MPC) are defined as follows:

- APC = C/Y where C = consumption, Y = income

- MPC = increase in C from a 1 unit increase in Y

- Explain why APC will always be greater than MPC if C = 400 + 0.5Y.

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Dissertation: In macroeconomics the average propensity to consume apc and
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