Propensity to Consume and Save

which of the following can have a negative value?

• APC

• APS

• MPC

• MPS

The value of ________ can never be negative , while _________ can have a value equal to one.

• APS,APC

• APS,MPS

• APC,APS

• MPS,APC

which of the following expression is correct?

• APC=Consumption/  income

• APC= change in consumption/change  in income 

• APC=APS-1

• APC= income/consumption

____________ refer to the ratio of change in saving to change in total income.

• MPS

• MPC

• APC

• APS

Which of the following is correct?

• APC+APS=1

• APC+MPS=1

• APS+MPC=1

• APS+MPS=1

Which of the following is correct?

• MPC + MPS = APC + APS

• APC +MPS = APS + MPC

• APC + MPC = APS + MPS

• APC – APS = MPC – MPS

If the marginal propensity to consume is 0.9, then the marginal propensity to save must be ;

• 1

• 0.1

• 1.1

• 0.9

____________ refers to the total value of final goods and services which all the sectors of an economy are planning to buy at a given level of income during a period of one accounting year.

• aggregate demand

• aggregate supply

_____________ refers to actual savings in an economy during a year.

• ex- ante saving

• APS

• MPS

• Ex-post saving

How much is MPS in an economy when MPC is .8?

• .2

• 3

• 1.6

• .8