Which of the following is FALSE about saving?
A)Saving is the source of funds used to finance investment.
B)Saving equals wealth minus consumption expenditures.
C)Saving adds to wealth.
D)Income left after paying taxes can either be consumed or saved.

Question

Quizplus · Accepted Answer

Saving is not equal to wealth minus consumption expenditures; rather, saving is the portion of income not spent on consumption. Wealth is the accumulation of past savings and other assets.

Which of the Following Is FALSE About Saving