With an increase in national income, both APC and APS fall. True/false

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Solution

False.
APC refers to Average Propensity to Consume which defines the amount of consumption in every 1 rupee of income for all level of income where as APS refers to Average Propensity to save which defines the amount of savings in every 1 rupee of income for all level of income. Therefore, if income rises then the proportion of APC increases at a diminishing rate where as the proportion of APS increases at an increasing rate.

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