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| 1. |
Explain the relationship between average propensity to consume and average propensity to save. Which of these can have a negative value and when ? |
| Answer» APC refers to ratio of absolute consumption to absolute incomeAPC= C/YAPS refers to ratio of absolute savings to absolute income.APS= S/YOut of these 2, APS can have negative value when income is less than consumption. | |