Saving in the economy
A) occurs when current spending is less than current incomes.
B) is generally not a determinant of future output.
C) and investment are essentially the same concept.
D) occurs when current consumption is more than current output.

Question

Quizplus · Accepted Answer

Saving in the economy occurs when current spending (consumption) is less than current incomes (output). It represents the amount of income that is not spent on consumption and is available to be used for investment purposes. Saving is a key determinant of future investment and economic growth.

Saving in the Economy