ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -It can never be negative as it is a change in the value when the value of income changes while it can be equal to one if the overall change in the value of income is used in savings.
Detailed explanation-2: -If expenditures on personal consumption, interest, and net current transfers exceed disposable personal income in a quarter, personal saving will be negative.
Detailed explanation-3: -Continuous variables It can’t be negative and it can’t be higher than three metres.
Detailed explanation-4: -What Does It Mean to Have a Negative Savings Rate? The term “negative savings rate” is pretty intuitive. It’s when savings are negative because people are spending more money than they earn. A negative savings rate on an individual level only affects one person and his or her financial dependents.
Detailed explanation-5: -No, APC can not be negative because even if there is 0 level of income, there has to be some consumption (autonomous consumption)on the other hand, APS can be negative as consumption at 0 level of income is nothing but dissaving.