MPC (Marginal Propensity to Consume) and MPS (Marginal Propensity to Save) are the two important concepts in macroeconomics that help in understanding how changes in income affect consumption and saving patterns in an economy.

MPC refers to the proportion of an increase in income that is spent on goods and services, while MPS refers to the proportion of an increase in income that is saved. The two concepts are complementary, meaning that if one increases, the other decreases, and vice versa.

In this case, the answer is option 'A', which means that MPC and MPS are equal to 1.0. This implies that if there is an increase in income, the entire amount will be spent on goods and services (MPC) and none will be saved (MPS).

This scenario is highly unlikely in a real-world situation as individuals tend to save a portion of their income even when their income increases. However, in some theoretical models, such as the Keynesian model, it is assumed that MPC and MPS can be equal to 1.0 under certain conditions, such as when there is a liquidity trap or when the government increases spending through deficit financing.

In conclusion, while the concept of MPC and MPS being equal to 1.0 is rare in practical situations, it is important to understand the complementary nature of these two concepts and how they affect the consumption and saving patterns in an economy.

MPC=∆C/∆Y AND MPS=∆S/∆Y
∆Y=∆C+∆S
MPC+MPS=∆C/∆Y+∆S/∆Y
=∆C+∆S/∆Y=∆Y/∆Y=1
MPS+MPC=1