Average Propensity to Consume

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The amount of money a person spends as a percentage of total income. For example, if one makes $50,000 and spends $40,000, the average propensity to consume is 80%. Countries with a high average propensity to consume generally have a lower unemployment rate because the demand to buy things creates jobs. However, it may be more susceptible to recession as people save very little. It should not be confused with the marginal propensity to consume.

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No references found			This important empirical finding makes the old "consumption puzzle" more intriguing because it shows that the average propensity to consume decreases not only with current income, but also with lifetime income. Do the rich save more? A new view based on intergenerational transfers by Fan, C. Simon / Southern Economic Journal It also is of grave concern that the average propensity to consume has begun to decline. Japanese editorial excerpts -2- by Japan Weekly Monitor In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. Research and Markets: The 2009 Economic and Product Market Databook ... by Business Wire			Average Directional Index Average discount rate Average Down average downtime Average Earnings Clause Average Equity Average Fixed Cost average free rent Average Frequency Average Hourly Earnings Average Indexed Monthly Earnings Average Inventory Average Irrespective of Percentage Average Life Average Maturity Average Monthly Earnings Average Net Cost Average Net Paid Circulation Average Outstanding Balance Average Price Average Price Call Average Price per Share Average Price Put Average Pricing Average Profit Margin Average Propensity to Consume Average Propensity to Import Average Propensity to Save Average Qualitative Opinion average rate of return Average Revenue Average Revenue Per Unit Average Semiprivate Rate Average Shareholders' Equity Average Shares Outstanding Average Stock Average Tax Rate Average Ticket Average Total Assets Average True Range Average Up Average Weekly Wage Average Workweek Average-Cost Method Averages Averaging Aversion al riesgo Aviation Accident Insurance Aviation Exclusion Aviation Hazard Aviation Insurance			Average Post Detection Integration average power Average Power Delay Profile Average Power Laser Average Power Laser Experiment average power output Average Power Range Monitor Average Price Average Price Call Average Price Calls Average Price Index Average Price Per Minute Average Price per Share Average Price Put Average Price Puts Average Prices Average Prices per Share Average Pricing Average Procurement Unit Cost Average Production Wage Average Productive Worker Average Profit Margin Average Profit Margins Average Profit Per User Average Propensity to Consume Average Propensity to Import Average propensity to save Average propensity to save Average Quadrupole Orientation Average Qualitative Opinion Average Qualitative Opinion Average Qualitative Opinions Average Quality Limit Average Quality Rating Average Quantity Repaired Monthly Average Quarter Hour Average Quarter of an Hour Average Quarterly Billing Average Queue Time Average Random Delay Average rate Average rate Average rate Average rate Average Rate of Change Average rate of return Average rate of return Average rate of return Average Rate Option Average Rate Options Average rates Average rates Average rates Average rates Average Rates of Return

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