Private saving is negative when:
A) there is a government budget surplus.
B) there is a government budget deficit.
C) after-tax income of households and businesses is less than consumption.
D) after-tax income of households and businesses is greater than consumption expenditures.

Question

Quizplus · Accepted Answer

Negative saving is the same of borrowing. If after-tax income of a household or a businesses is less than spending, than the balance must be borrowed.

Private Saving Is Negative When