If the personal saving rate is 20% and personal saving is $20 billion, the value of personal disposable income is
A) $4 billion.
B) $20 billion.
C) $100 billion.
D) $400 billion.

Question

Quizplus · Accepted Answer

The personal saving rate is the percentage of personal disposable income that is saved. If the saving rate is 20% and personal saving is $20 billion, then the disposable income can be calculated as $20 billion / 20% = $100 billion.

If the Personal Saving Rate Is 20% and Personal Saving