A savings-deficit unit is one:

Question

Quizplus · Accepted Answer

A savings-deficit unit is a unit whose expenditure exceeds its income for a particular period. This means that they are spending more than they are earning and are not able to save any money. They may need to borrow from a financial institution to make up for this deficit. Option A is incorrect because a unit whose expenditure is equal to the income generated is not necessarily a savings-deficit unit. Option C is partially correct but not the best choice because a unit may need to borrow for other reasons as well. Option D is incorrect because a unit whose expenditure is equal to or greater than its income generated is not necessarily a savings-deficit unit.

A Savings-Deficit Unit Is One