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प्रश्न
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
उत्तर
When C > Y, APC = C/Y > 1, but MPC is always less than 1 because an increase in consumption expenditure is always less than an increase in income, as a part of increased income is used for saving as well.
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संबंधित प्रश्न
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| INCOME (Y) |
SAVING (S) |
APC |
| 0 | (-) 12 | |
| 20 | 6 |
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