Asked by
Cooper Johnson
on Oct 13, 2024
Verified
When the APS is negative
A) the APC is less than one.
B) the APC is equal to one.
C) the APC is greater than one.
D) the APC may be less than one,one or greater than one.
APC
Average Propensity to Consume, which is the fraction of income that a person or population spends rather than saving.
APS
The Average Propensity to Save, which is the proportion of total income that is saved rather than spent on consumption.
- Familiarize oneself with the mathematical ties between APC and APS, specifically their relationship of inverse proportionality.
Verified Answer
LD
Learning Objectives
- Familiarize oneself with the mathematical ties between APC and APS, specifically their relationship of inverse proportionality.