A theory of saving is necessarily a theory of consumption,because ________.
A)by definition,any unit of disposable income that is not a consumption expenditure is a unit of saving
B)consumption decisions are made after saving has occurred
C)private saving is equal to private investment
D)the goal of consumption choices is to achieve the desired level of savings

Question

Quizplus · Accepted Answer

Saving is defined as the portion of disposable income that is not spent on consumption expenditures. Therefore, any theory of saving must also consider consumption since the two are inherently linked.

A Theory of Saving Is Necessarily a Theory of Consumption,because