Statement A: As disposable income goes up, the APC falls but APS increases. Statement B: As disposable income goes up, the MPC falls but MPS increases. Refer to the statement above. Which of the following is correct? O 1) the Statement A is correct. 2) the Statement B is correct. 3) Both Statement A and B are correct. O 4) Neither Statement A nor Statement B is correct.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Statement A: As disposable income goes up, the APC falls but APS increases.
Statement B: As disposable income goes up, the MPC falls but MPS increases.
Refer to the statement above. Which of the following is correct?
1) the Statement A is correct.
2) the Statement B is correct.
3) Both Statement A and B are correct.
4) Neither Statement A nor Statement B is correct.
Transcribed Image Text:Statement A: As disposable income goes up, the APC falls but APS increases. Statement B: As disposable income goes up, the MPC falls but MPS increases. Refer to the statement above. Which of the following is correct? 1) the Statement A is correct. 2) the Statement B is correct. 3) Both Statement A and B are correct. 4) Neither Statement A nor Statement B is correct.
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