Which of the following relations is not correct?
A) 1 − MPC = MPS.
B) APS + APC = 1.
C) MPS = MPC + 1.
D) MPC + MPS = 1.

Name: Which of the following relations is not correct? A) 1 − MPC = MPS. B) APS + APC = 1. C) MPS = MPC + 1. D) MPC + MPS = 1.
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Question

Quizplus · Accepted Answer

The correct relation is MPS = 1 − MPC. This is known as the basic equation of the theory of income determination. Therefore, option C is not correct as it shows MPC + 1 = MPS.

Which of the Following Relations Is Not Correct