Annual comprehensive consumption is equal to annual comprehensive income if there is no annual savings.

Question

Quizplus · Accepted Answer

Annual comprehensive consumption (what is spent on goods and services) will equal annual comprehensive income (what is earned) if there is no savings. This is because savings is the amount of income that is not spent on consumption, so if there is no savings, all the income must have been spent on consumption.

Annual Comprehensive Consumption Is Equal to Annual Comprehensive Income If