Explain the following:
Average propensity to consume (APC), Can value of APC be greater than one? 

Average propensity to consume (APC). APC is the ratio of total consumption expenditure to total income. It is the percentage (or ratio) of income which is spent on consumption. Thus, it gives the average consumption-income relationship at different levels of income. It is worked out by dividing total consumption expenditure (C) with total income (Y). Symbolically:
APC = C/Y
For instance, if aggregate income of an economy is र 5,000 crores and aggregate consumption is र 4,500 crores, then:
. It shows 90% of income is spent on consumption.
Features of APC:
(i) APC can be > 1 when at very low level of income (say, र 1000 crore), consumption expenditure exceeds income (say, र 1200 crore). APC = 1200/1000 = 1.2.
(ii) APC can be < 1 when consumption expenditure (say, र 800 crore) is lesser than income (say र 1000 crore). APC = 800/1000 = 0.8
(iii) APC can never be zero since at zero income, survival needs minimum consumption (called- Autonomous Consumption).
(iv) APC falls as income increases.