The value of APS (Average Propensity to save) can never be : |
-0.5 0 +0.5 1 |
1 |
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. |