If personal saving is -$10 billion and disposable personal income is $370 billion, then personal consumption spending
A) is $360 billion.
B) is $380 billion.
C) is $390 billion.
D) cannot be determined from this information.

Question

Quizplus · Accepted Answer

The formula for calculating personal consumption spending (C) is: 
C = Disposable personal income - Personal saving

Substituting the given values: 
C = $370 billion - (-$10 billion) 
C = $370 billion + $10 billion 
C = $380 billion

Therefore, personal consumption spending is $380 billion, which is option B.

If Personal Saving Is -$10 Billion and Disposable Personal Income