Match each ratio with its formula.

Aggregate Demand, Consumption & Saving · Question 32 of 60

Question 32

MediumOriginal question

Match each ratio with its formula.

List I	List II
A. APC	I. ΔC ÷ ΔY
B. MPC	II. ΔS ÷ ΔY
C. APS	III. C ÷ Y
D. MPS	IV. S ÷ Y

A-III, B-IV, C-II, D-ICorrect answerYour answerA-IV, B-III, C-I, D-IICorrect answerYour answerA-II, B-I, C-IV, D-IIICorrect answerYour answerA-III, B-I, C-IV, D-IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Average = total ÷ income; marginal = change ÷ change in income.

Concept: Propensities
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsAPC, MPC, APS and MPS

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Match each ratio with its formula.

Question 32

Explanation