-Refer to the above figure. If real disposable income is less than $5,000, then saving is
A) 0.
B) negative.
C) positive.
D) none of the above: cannot be determined with the given information.

Question

-Refer to the above figure. If real disposable income is less than $5,000, then saving is
A) 0. 
B) negative. 
C) positive. 
D) none of the above: cannot be determined with the given information.

Quizplus · Accepted Answer

When real disposable income is less than $5,000, the saving is negative because individuals or households are likely spending more than they are earning, leading to dissaving or negative saving.

-Refer to the Above Figure