A household which consumes assets or increases debt during the year is a condition sometimes referred to as:
A) Poor
B) Negative income
C) Negative savings
D) Asset consumption
E) None of the above

Question

Quizplus · Accepted Answer

Negative savings occur when a household's expenditure exceeds its income, leading to the consumption of assets or an increase in debt to cover the shortfall.

A Household Which Consumes Assets or Increases Debt During the Year