The correct answer is Option 4: Average Propensity to Save
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Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are both values between 0 and 1. Change in savings or change in consumption can never be negative. They represent the fraction of additional income that is consumed or saved, respectively, and cannot be negative.
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Average Propensity to Consume (APC) is the ratio of consumption to income. APC cannot be negative as consumption cannot negative. It typically ranges between 0 and 1, and can approach 0 but not go negative.
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Average Propensity to Save (APS) is the ratio of savings to income. This value can be negative if consumption exceeds income, resulting in negative savings.
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