Private saving by households is:
A)the portion of disposable income not spent on goods and services.
B)the portion of income coming from transfer payments.
C)often larger than consumption spending.
D)not related to consumption spending.

Question

Quizplus · Accepted Answer

Private saving by households is the portion of disposable income that is not spent on goods and services. Therefore, choice (A) is the correct answer. Choice (B) is incorrect because transfer payments are not considered part of disposable income. Choice (C) may be true in some cases, but not always. And choice (D) is incorrect as private saving is related to consumption spending as it is the portion of income not spent on consumption.

Private Saving by Households Is