If consumption is greater than disposable income,the only APS that could possibly be right from among the following would be

A) -.1.
B) 0.
C) .1.
D) 1.0.

Question

If consumption is greater than disposable income,the only APS that could possibly be right from among the following would beA) -.1.B) 0.C) .1.D) 1.0.

Touqi Tazwar · Accepted Answer

Final Answer : A, Explanation :  When consumption is greater than disposable income, it means savings are negative. The Average Propensity to Save (APS) is calculated as savings divided by disposable income. If savings are negative, the APS would also be negative, making -.1 the only possible correct option among the given choices.

If consumption is greater than disposable income,the only APS that could possibly be right from among the following would be

A) -.1.
B) 0.
C) .1.
D) 1.0.

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