Which of the following statement is not correct?

APC rises with an increase in income.

The correct answer is option 3: APC rises with an increase in income.

Let's analyze each statement to determine its correctness:

1. APC can be more than one. This is correct. The Average Propensity to Consume (APC) can be more than one if consumption C is greater than income Y, which can happen when households spend more than their income by borrowing or using savings.

2. APS can never be equal to 1. This is correct. The Average Propensity to Save (APS) is defined as the ratio of savings to income. APS being equal to 1 would imply that all of the income is saved and none is spent on consumption, which is unrealistic in practical scenarios. 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 30, then the APS value will be -0.3.

3. APC rises with an increase in income. This is not correct. Typically, the APC decreases as income increases because the proportion of income spent on consumption tends to decrease as people save more of their additional income.

4. APS can be less than 1. This is correct. The APS can be less than 1 since it represents the fraction of income that is saved, and it is usually less than the total income.