Question

Can the value of average propensity to save be negative? If yes when??



What can be the maximum value of marginal propensity to save??​

Answer 1

Answer:

Value. Since MPS is measured as ratio of change in savings to change in income, its value lies between 0 and 1. Also, marginal propensity to save is opposite of marginal propensity to consume. Mathematically, in a closed economy, MPS + MPC = 1, since an increase in one unit of income will be either consumed or saved.

Answer 2

hey!

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Answer:-

________

Yes,

--------->>>>the value of average propensity can be negative when consumption is more than national income.

example:-before the break point.

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The maximum value of marginal propensity to save is 1.it's only possible when MPC=0

example:-

_________

the additional income is saved.

hope help u!!!