Regarding Average Propensity to save:

(A) APS can be zero
(B) APS can be more than one
(C) APS can be negative
(D) APS can be one
(E) APS can be positive

Choose the correct answer from the options given below :

(A), (C), (E) Only

egarding Average Propensity to save:

• (A) APS can be zero: This is correct. If a person's consumption is equal to their income, then their APS is zero.
• (B) APS can be more than one: This is incorrect. APS can never be greater than one because APS is the ratio between total saving and total income (APS=SY). Total savings cannot be greater than total income
• (C) APS can be negative: This is correct. If a person's consumption is greater than their income, then they are dissaving, and their APS is negative.
• (D) APS can be one: This is incorrect. APS is defined as saving divided by income. APS is a ratio, and it cannot be one unless total saving is equal to total income.
• (E) APS can be positive: This is correct. If a person's consumption is less than their income, then they are saving, and their APS is positive.