Which of the following is FALSE?
A)APC + MPS = 1
B)MPC + MPS = 1
C)1 - APC = APS
D)APC + APS = 1

Question

Quizplus · Accepted Answer

The equation APC + MPS = 1 is incorrect. It should be APC + APS = 1, which means the sum of average propensity to consume (APC) and average propensity to save (APS) is equal to one. Option B is correct as MPC + MPS = 1, which means the sum of marginal propensity to consume (MPC) and marginal propensity to save (MPS) is equal to one. Option C is also correct as 1 - APC is equal to APS.

Which of the Following Is FALSE