Description : Over short period, when income rises, average propensity to consume usually - (1) rises (2) falls (3) remains constant (4) fluctuates
Last Answer : (2) falls Explanation: Keynes postulated that aggregate consumption is a function of aggregate current disposable income. The Keynesian consumption function is written as: C = a + eY a > 0, 0 < c < 1; ... the disposal in-come. So as income increases, average propensity to consume (APC = C/Y) falls.