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.

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

Section: Chapter Questions

Problem 1QTC

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