When desired consumption exceeds disposable income,desired saving is ________; when desired consumption is less than the disposable income,desired saving is ________.
A)negative; negative
B)positive; negative
C)negative; positive
D)positive; positive
E)zero; positive

Question

Quizplus · Accepted Answer

When desired consumption exceeds disposable income, individuals may try to save less and borrow more, resulting in negative desired saving. On the other hand, when desired consumption is less than disposable income, individuals may choose to save the difference, resulting in positive desired saving. Therefore, the correct choice is C.

When Desired Consumption Exceeds Disposable Income,desired Saving Is ________; When