Individuals,corporations,and governments can be either savings deficit units or savings surplus units.

Question

Quizplus · Accepted Answer

This statement is true. Savings deficit units are those that spend more than they earn and rely on borrowing or selling assets to cover the difference, while savings surplus units are those that earn more than they spend and have excess funds to save or invest. All three entities mentioned (individuals, corporations, and governments) can fall into either category.

Individuals,corporations,and Governments Can Be Either Savings Deficit Units or Savings