When desired consumption exceeds disposable income, desired saving is ; when desired consumption is less than the disposable income, desired saving is _ .
A)positive; negative
B)positive; positive
C)zero; positive
D)negative; positive
E)negative; negative

Question

Quizplus · Accepted Answer

When desired consumption exceeds disposable income, individuals are spending more than they earn, leading to negative saving. Conversely, when desired consumption is less than disposable income, individuals are saving the excess, resulting in positive saving.

When Desired Consumption Exceeds Disposable Income, Desired Saving Is ;