Question 28
MediumOriginal questionWhich of these can be greater than 1?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Below the break-even income, consumption exceeds income, so APC > 1.
In Keynes's theory MPC and MPS lie between 0 and 1, and APS is at most 1.
- Concept
- Which ratio can exceed 1
- Typical timeTypical
- 70 s
- Your timeYours
- —
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