If consumption spending is larger than disposable income,
A)saving is positive.
B)dissaving occurs.
C)saving is exactly zero.
D)a depression results.
E)this cannot occur.

Name: If consumption spending is larger than disposable income, A)saving is positive. B)dissaving occurs. C)saving is exactly zero. D)a depression results. E)this cannot occur.
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Question

Quizplus · Accepted Answer

If consumption spending is larger than disposable income, then individuals are spending more than they earn, which means they are dissaving.

If Consumption Spending Is Larger Than Disposable Income