Practicing Success
According to the Keynesian economics, the value of APC can never be. |
Zero Unity More than one Less than one |
Zero |
The correct answer is option (1) : Zero APC refers to Average Propensity to Consume which defines the amount of consumption in every 1 rupee of income for all level of income which can never be equal to zero as consumption can never be equal to zero even when income is zero in the economy. Even at the zero level of income we will consume something i.e. autonomous consumption. The value of APC can be more than 1. At low levels of income, consumption tends to be more than income. |