Question

Can the value of APS be negative ?if yes then when?
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Answer 1

Answer:

Yes, APS can be negative in situations when S is negative, i.e. when consumption exceeds income, e.g. Y = 50, C = 100 .

APS can never be 1 or greater than 1. That said, APS can have a negative value, if income is zero and consumption has a positive value. For example, if income is 0 and consumption is 30, then the APS value will be -0.3.

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Answer 2

Explanation:

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