__ can never be negative while __ can have value as 1. Option 1: APS, APC Option 2: MPC, APS Option 3: APC, APS Option 4: MPS, APC

Answer: MPS, APC. Solution: MPS = ( S)/( Y) Since change in savings S is always non-negative relative to change in income Y, MPS can never be negative. APC = C/Y At the break-even point, consumption equals income, so: APC = C/Y = Y/Y = 1 Therefore, APC can have a value of 1. MPS can never be negative while APC can have value as 1.

Macro

Income & Employment

Medium

can never be negative while can have value as 1.

APS, APC

MPC, APS

APC, APS

MPS, APC

✅ Correct Option: 4

MPS = $\dfrac{\Delta S}{\Delta Y}$

Since change in savings $\Delta S$ is always non-negative relative to change in income $\Delta Y$ , MPS can never be negative.

APC = $\dfrac{C}{Y}$

At the break-even point, consumption equals income, so:

$APC = \dfrac{C}{Y} = \dfrac{Y}{Y} = 1$

Therefore, APC can have a value of 1.

MPS can never be negative while APC can have value as 1.

2026: 20 May Shift 1

Identify the correct statements from the following.

(A) Ex-ante depicts what has been planned?

(B) Ex-post depicts what has been estimated production?

(D) Ex-post depicts what has actually happened.?

Choose the correct answer from the options given below:

2026: 23 May Shift 1

The maximum value of MPC can be:

2025: 31 May Shift 1

From the following figure, how to obtain an aggregate demand function?

2025: 13 May Shift 2

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called:

2025: 28 May Shift 1

According to ___________, if the marginal propensity to save in the economy increases, the total value of saving in the economy will not increase.

2025: 3 June Shift 1

The range of value of investment multiplier is always between _________ and _________.

__________ can never be negative while __________ can have value as 1.

Solution

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can never be negative while can have value as 1.