In a one-period economy, real consumption
A) is always less than disposable income.
B) is typically greater than disposable income.
C) is exactly equal to disposable income.
D) can be greater than, less than, or equal to disposable income.
E) can be less than savings.

Question

Quizplus · Accepted Answer

Real consumption is exactly equal to disposable income in a one-period economy because there is no saving or investment.

In a One-Period Economy, Real Consumption