How can dissaving in the current period be funded?
(i) borrowing from friends
(ii) bank loans
(iii) previous savings
(iv) current income earned
A)(ii) and (iii)
B)(i), (ii), and (iii)
C)(ii), (iii), and (iv)
D)(i), (ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

Dissaving occurs when expenditures exceed income. It can be funded through borrowing from friends (i), taking bank loans (ii), or using previous savings (iii). Current income earned (iv) cannot fund dissaving as dissaving implies spending more than the current income.

How Can Dissaving in the Current Period Be Funded