If Corinne's income is reduced to zero after she loses her job, her ________ will be greater than zero and her ________ will be less than zero.
A) taxes; consumption
B) saving; investment
C) consumption; expenses
D) consumption; saving

Question

Quizplus · Accepted Answer

When Corinne's income is reduced to zero, her consumption (spending) will still continue but her saving will be zero because she has no income to save. Therefore, her consumption will be greater than zero and her saving will be less than zero.

If Corinne's Income Is Reduced to Zero After She Loses