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

Question

Quizplus · Accepted Answer

Consumption expenditure can only exceed disposable income if there is dissaving, which means spending more than income. This is the case when people use past savings or borrow to finance current spending, resulting in a negative change in saving. Therefore, option C is the correct answer.

Consumption Expenditure Exceeds Disposable Income