If real disposable income is $300 billion and real consumer expenditures are $250 billion, it can be assumed that
A)the government is spending the difference.
B)the difference is being invested.
C)households are saving the difference.
D)transfer payments make up the difference.

Question

Quizplus · Accepted Answer

The difference between real disposable income and consumer expenditures is $50 billion ($300 billion - $250 billion). This indicates that households are saving the difference, as they are not spending all of their disposable income.

If Real Disposable Income Is $300 Billion and Real Consumer