Practicing Success
________ can have a negative value. Which of the following option suits best in the above blank? |
Marginal Propensity to Consume Marginal Propensity to Save Average Propensity to Consume Average Propensity to Save |
Average Propensity to Save |
Savings can be negative. This happens when Consumption> Income. So, APS can be negative. Change in savings or change in consumption can never be negative. Hence, MPC and MPS are not negative. APC cannot be negative as consumption cannot negative. |