The saving rate equals saving divided by

Question

Quizplus · Accepted Answer

The saving rate is calculated by dividing the amount of saving (money not spent on consumption) by the income earned during a specific period. Therefore, option D, income, is the correct answer. Options A and B are incorrect because they are measures of a person's financial position, not the calculation of the saving rate. Option C, liabilities, is incorrect because it represents the amount of debt a person owes rather than their savings. Option E, investment, is also incorrect as it refers to the allocation of funds rather than the calculation of the saving rate.

The Saving Rate Equals Saving Divided by