It is conceivable that the APC, APS, MPC, and MPS could simultaneously be
A) APC = 1.0; APS = 0.1; MPC = 0.85; MPS = 0.25.
B) APC = 0.8; APS = 0.2; MPC = 1.1; MPS = 0.1.
C) APC = 1.3; APS = -0.3; MPC = 0.8; MPS = 0.2.
D) APC = 1.0; APS = 0; MPC = 0.15; MPS = 0.15.

Question

Quizplus · Accepted Answer

APC (Average Propensity to Consume) and APS (Average Propensity to Save) should sum to 1, and MPC (Marginal Propensity to Consume) and MPS (Marginal Propensity to Save) should also sum to 1. In option C, APC + APS = 1.3 - 0.3 = 1 and MPC + MPS = 0.8 + 0.2 = 1, which satisfies these conditions.

It Is Conceivable That the APC, APS, MPC, and MPS