Saving is
A) the amount one does not consume in a given period of time while savings is the accumulation of past periods of saving.
B) the accumulation of past periods of savings while savings is the amount of disposable income that is not consumed in a given period of time.
C) the difference between real GDP and disposable income while savings is the difference between disposable income and consumption spending.
D) the difference between disposable income and spending on goods and services while savings is the difference between real GDP and disposable income.

Question

Quizplus · Accepted Answer

Saving refers to the portion of income that is not spent on consumption during a specific period, while savings represent the cumulative total of these unspent amounts over time. Choice A accurately distinguishes between the act of saving (a flow concept) in a given period and the stock of accumulated savings.

Saving Is