All of the following statements about consuming in excess of one's disposable income are true, except:
A) It is possible, and it's called dissaving
B) In this case, the values of both saving and the APS are negative
C) (APC + APS) will be less than 1 in this situation
D) The value of APC will be greater than 1 in this case

Question

Quizplus · Accepted Answer

The sum of the Average Propensity to Consume (APC) and the Average Propensity to Save (APS) is always equal to 1, regardless of whether saving is negative or positive.

All of the Following Statements About Consuming in Excess of One's