Can MPS or MPC ever be negative ?

Answer :

No, neither MPS or MPC can ever be negative. Because MPS is the ratio between additional saving (∆S) and additional income (∆Y). Likewise, MPC is the ratio between additional consumption (∆C) 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. Likewise, the ratio ∆C / ∆Y refers to slope of consumption function which is always positive because of positive relationship between C and Y.

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