How much is the average propensity to consume when disposable income is $800 billion?

A) 0
B) .25
C) .5
D) .75
E) 1.00

Average Propensity

Average Propensity refers to the average tendency of individuals or entities, such as the average propensity to consume or save, measured over a specific period or income level.

Disposable Income

The available cash reserves for households to spend and save once taxes on income have been settled.

Consumption

The use of goods and services by households; an economic activity that represents spending by consumers.