Saving is
A) the sum of the funds people hold in their checking accounts.
B) after-tax income that is not spent on consumption.
C) always equal to consumption.
D) equal to disposable income plus consumption.

Question

Quizplus · Accepted Answer

Saving is defined as after-tax income that is not spent on consumption. It is the amount of money that remains after people have consumed goods and services and paid taxes on their income. Therefore, option B is the correct answer. Option A is incorrect because saving includes funds held in various forms, not just checking accounts. Option C is incorrect because saving and consumption are opposite concepts. Option D is incorrect because it includes consumption as part of saving, which is not accurate.

Saving Is