When the APC is greater than 1,the APS must be
A)Equal to 1.
B)Greater than 1 also.
C)Between 0 and 1.
D)Negative.

Name: When the APC is greater than 1,the APS must be A)Equal to 1. B)Greater than 1 also. C)Between 0 and 1. D)Negative.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the Average Propensity to Consume (APC) is greater than 1, it means that consumption is greater than income, leading to negative savings, hence the Average Propensity to Save (APS) must be negative.

When the APC Is Greater Than 1,the APS Must Be