Question : Which of the following statement are true?
- If APC is 1.05 then APC will be -0.05.
- When consumption function is C=60+0.6Y, savings are -60 at Y=0.
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Answer (1)
22nd Jan, 2024
Correct Answer:
Both are true.
Solution :
APC+APS=1
1.05-0.05=1
S= -60(0.4)0
S=-60
Hence, Option A is correct.
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