Consumption expenditure exceeds disposable income
A) only when the economy is in equilibrium.
B) when there is dissaving.
C) never.
D) when there is positive saving.
E) always.

Question

Quizplus · Accepted Answer

Consumption expenditure exceeds disposable income when individuals spend more than they earn, which is referred to as dissaving. This occurs when people use savings or borrow to finance their consumption.

Consumption Expenditure Exceeds Disposable Income