Question

Consumption can exceed income but saving cannot why. ​

Answer 1

Answer:

Break-even point refers to that point in the level of income at which consumption is just equal to income. In other words, whole of income is spent on consumption and there is no saving. Below this level of income, consumption is greater than income but above this level, income is greater than consumption.

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Answer 2

Answer:

But both MPC i.e. Marginal Propensity to Consume and MPS i.e. Marginal Propensity to Save cannot be more than one or less than zero as it is percentage change in consumption or saving when there is some change in the level of income which cannot be more than the change in income.