Given the Keynesian consumption function C = 10 + 0.8 Td, what is the average propensity to consume when the disposable income is Rs 1000?

Explanation

Using the consumption function C = 10 + 0.8 × 1000, total consumption is Rs 810. The average propensity to consume (APC) is total consumption divided by disposable income, which is 810 ÷ 1000 = 0.81.