Identify the incorrect statement from the following :

APS can be greater than one

The correct answer is option (3) : APS can be greater than one

APS can be greater than one : This is incorrect. The Average Propensity to Save (APS) is the ratio of saving to income. It can range from 0 to 1, but it cannot be greater than one. If APS is 1, it implies that all income is saved, leaving nothing for consumption.

APC can be greater than one: This is correct. APC refers to Average Propensity to Consume which defines the amount of consumption in every 1 rupee of income for all level of income which can be more than one as long as consumption is more national income, i.e. before the break-even point, APC > 1.

MPC can be zero : This is correct. The Marginal Propensity to Consume (MPC) is the change in consumption divided by the change in income. If there is no change in consumption despite a change in income, MPC would be zero.

 MPS can be equal to one : This is correct. The Marginal Propensity to Save (MPS) is the change in saving divided by the change in income. If all additional income is saved (and none is consumed), MPS would be one.