Which of the following is false?
A) APC + MPS = 1
B) MPC + MPS = 1
C) 1 - APC = APS
D) APC + APS = 1

Name: Which of the following is false? A) APC + MPS = 1 B) MPC + MPS = 1 C) 1 - APC = APS D) APC + APS = 1
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Question

Quizplus · Accepted Answer

APC is the average propensity to consume, and MPS is the marginal propensity to save. The sum of APC and MPS is always equal to 1, as all income is either consumed or saved.

Which of the Following Is False