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In a two sector economy if …

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In a two sector economy if income is zero average propensity to consume will also be zero.....true or false....plsss tell
  • 2 answers

Nav Dhillon 6 years, 7 months ago

Thankssss rimjhim .....i hve written false but i gave reason that if income is zero there will be autonomous consumption in economy and APC =c/y ....so it cant be zero..........can i get marks

Rimjhim Kumari 6 years, 7 months ago

False...because APC = C/Y nd if Y=0 then APC os infinity not zero
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