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Ch. 15 - Income and ConsumptionWorksheetSee all chapters

# Average Propensity to Consume and Save

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Sections
The Consumption Function
The Saving Function
Determinants of Consumption and Saving
Average Propensity to Consume and Save
Multiplier Effect of Investment Spending

Concept #1: Average Propensity to Consume and Save

Practice: If the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is $1000, what is the average propensity to consume? Practice: If the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is$1000, what is the marginal propensity to save?