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Question
Which of the following statements is not correct?
Options
APC is the ratio of consumption expenditure to any particular level of income.
MPC is the ratio of a change in consumption to the change in income.
APS is the ratio of savings to any particular level of consumption.
MPS is the ratio of a change in savings to the change in the income.
MCQ
Solution
APS is the ratio of savings to any particular level of consumption.
Explanation:
The percentage of money that is saved rather than spent on current goods and services is referred to as the average propensity to save.
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