If consumption exceeds income, saving takes place.

Name: If consumption exceeds income, saving takes place.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If consumption exceeds income, it means that the individual is spending more than what they are earning. In such a situation, saving cannot take place as there is no surplus income left to save. Instead, the individual may start dipping into their savings or borrowing money to finance their expenses.

If Consumption Exceeds Income, Saving Takes Place