When the value of APS is negative, MPS will also become negative. Is the given statement truevor false? Give reason as well.

False. MPS can never be negative. As per the relationship between MPC and MPS, their sum is unity. Also, the value of MPC lies between the range of 0 to 1, so MPC can never be less than 0. Thus, as MPC can never be less than 0, so the value of MPS can never be less than 0, i.e. can never be negative.

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when APS is negative, MPS will NOT be negative.

Infact the value of MPS can never be negative, since it is the ratio of additional saving to additional income..So it can never be negative. APS can be negative if value of S is negative..!

Hope it helps..!

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