The value of APS (Average Propensity to save) can never be :
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : 1
APS can never be 1 or greater than 1 as savings can never be equal to income. There will always be some expenditure.
That said, APS can have a negative value if income is zero and consumption has a positive value. For example, if income is 0 and consumption is 50, then the APS value will be -0.5.