Among apc and mpc whose can …
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Posted by Keshav Duggal 7 years ago
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Yogita Ingle 7 years ago
APC can be zero only when consumption becomes zero. However, consumption is never zero at any level of income. Even at zero level of national income, there is autonomous consumption (c).
If entire additional income is saved, i.e. AC = 0, then MPC = 0. In normal situations, value of MPC varies between 0 and 1.
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