State whether the following statements are true or false
a) The value of MPS can never be negative .
b) The value of APS can never be greater than 1 .

Dear Student,
 (a) The value of MPS can never be negative, this statement is true. Because the value of MPS lies between 0 and 1 and this is because a change in saving cannot be greater than the change in income.

 (b) The value of APS can never be greater than 1, this statement is true. Because it can never be equal to 1 as saving can never be equal to income. And saving can never be more than income, but APS can be negative when consumption will be more than income.

Regards,

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