Can mps and mpc be negetive and why??
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Can mps and mpc be negetive and why??
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Answer:
No, neither MPS or MPC can ever be negative. Because MPS is the ratio between additional saving (∆S ) and additional income(∆Y). ... The ratio ∆S / ∆Y refers to slope of Saving function which is always positive because of positive relationship between S and Y.
Explanation:
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