Q19 of 25 Page 4

Do you think that MPS cannot be negative, but APS can be? Explain.

● APS can be negative when the consumption is more than the national income but MPS cannot be negative.


● It is the ratio of the change in savings to the change in income.


● It refers to the slope of the saving function which is always positive due to the positive relationship between the 2 variables.


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