The average propensity to consume (APC) is an economic term that refers to the percentage of income that is spent on consumption. It is calculated by dividing total consumption by total income. The APC is a key indicator of an economy's health and can be used to predict future economic activity. A high APC indicates that consumers are confident and are spending a large portion of their income on goods and services. This can be a sign of economic growth. A low APC indicates that consumers are saving more of their income and may be an indication of an impending economic downturn.