Average propensity to consume is defined as

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Average propensity to consume is defined as

1. Aggregate consumption ¸ Total population
2. Aggregate income ¸ Aggregate consumption
3. Change in consumption ¸ Change in income
4. Aggregate consumption ¸ Aggregate income

Correct Option: D

In economics, the average propensity to consume (APC) is defined as the ratio of aggregate or total consumption to aggregate income in a given period of time. Thus, the value of average propensity to consume, for any income level, may be found by dividing consumption by income.