Answer the following
1.can APS be negative
2.can APS be zero
3.What is the maximum value of APC
4. what is the minimum value of APS
5.can APS be greater than 1
(answer in tabular form)
Dear student,
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| Situation | Explanation |
|---|---|
| 1. Can APS be negative | Yes, APS can be negative. This is because when the consumption is greater than the income then the APS will be less than zero. |
| 2.can APS be zero | Yes, APS can be zero. This is when the consumption is equal to the income. Then, the saving will be zero thus, resulting in APS being zero. |
| 3.What is the maximum value of APC | Maximum value of APC is 1: when consumption expenditure = level of income (break even point) then APC is 1 and APS will be zero since savings will be zero in this case. |
| 4. what is the minimum value of APS | APS can never be 1 or more than 1 but there is no minimum value for it as it is less than 1 and also it can be less than zero i.e., negative. |
| 5.can APS be greater than 1 | No, APS can never be greater than 1 because savings can never be greater than incomes. |
Regards