Dissaving occurs when households spend more on consumption than they receive as disposable income.
When a household consumes more than its income,saving will be negative.

Name: Dissaving occurs when households spend more on consumption than they receive as disposable income. When a household consumes more than its income,saving will be negative.
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Question

Quizplus · Accepted Answer

Dissaving means that the household is spending more than its income, so savings will be negative. Therefore, option A is correct.

Dissaving Occurs When Households Spend More on Consumption Than They