A cash surplus will typically produce a positive savings ratio.

Name: A cash surplus will typically produce a positive savings ratio.
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Question

Quizplus · Accepted Answer

A cash surplus means that there is more money coming in than going out, which can lead to a higher savings ratio. The savings ratio is the percentage of income that is saved rather than spent, so if there is more income due to a cash surplus, there is a higher potential for savings.

A Cash Surplus Will Typically Produce a Positive Savings Ratio