CBSE Class 12-commerce Answered
Which one of two Average propensity to consume or Average propensity to save can be negative and why. Explain.
Asked by raksha2sanubth | 10 Jul, 2020, 09:24: AM
Expert Answer
APS can be negative.
APS can be negative, when consumption is more than income and there is no savings.
APC cannot be negative or zero because even at the zero level of income, we will consume something for survival i.e., autonomous consumption.
This consumption expenditure is made by using past savings.
Answered by Christina | 10 Jul, 2020, 09:50: AM
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