1. Do you agree that MPS cannot be negative, but APS can be? with the help of a example in schedule ??
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Marginal Propensity to Save (MPS)
APS can be less than zero when there are disserving, i.e. till consumption is more than national income. MPS can never be less than zero as change in saving can never be negative, i.e. change in consumption can never be more than change in income
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- Marginal Propensity to Save (MPS)
APS can be less than zero when there are disserving, i.e. till consumption is more than national income. MPS can never be less than zero as change in saving can never be negative, i.e. change in consumption can never be more than change in income
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