1.

State whether the following are true or false. Give reasons: (a) At zero level of income, savings are positive. (b) The relationship between multiplier and MPC is inverse and that with MPS is direct. (c) The value of APC varies from 1 to infinity. (d) The value of MPS can be negative.

Answer»

State whether the following are true or false. Give reasons:

(a) At zero level of income, savings are positive.

(b) The relationship between multiplier and MPC is inverse and that with MPS is direct.

(c) The value of APC varies from 1 to infinity.

(d) The value of MPS can be negative.



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