When consumption spending is greater than disposable income, we know with certainty that we have
A)dissaving.
B)excess thrift.
C)positive savings.
D)negative net investment.

Question

Quizplus · Accepted Answer

When consumption spending is greater than disposable income, it means that individuals are spending more than they are earning, resulting in negative savings. This is referred to as dissaving. Therefore, the correct answer is A.

When Consumption Spending Is Greater Than Disposable Income, We Know