Personal saving is
A) total income not spent on consumption.
B) disposable personal income not spent on consumption.
C) found by subtracting consumption from disposable personal income.
D) disposable income spent on investment.

Question

Quizplus · Accepted Answer

Personal saving refers to the portion of disposable personal income that is not spent on consumption. Therefore, the correct option is B, which states that personal saving is disposable personal income not spent on consumption. Option A is incorrect because it does not account for disposable personal income. Option C is incorrect because it suggests that personal saving is simply the difference between consumption and disposable personal income, rather than the specific portion of disposable personal income not spent on consumption. Option D is incorrect because it suggests that personal saving is spent on investment, which is not the case.

Personal Saving Is