If Wanda's income is reduced to zero after she loses her job, her consumption will be ________ and her saving will be ________.
A) less than zero; less than zero
B) greater than zero; greater than zero
C) less than zero; greater than zero
D) greater than zero; less than zero

Question

Quizplus · Accepted Answer

Wanda's consumption will still be greater than zero because she will need to consume basic necessities, but her saving will be less than zero as she may need to dip into her savings or borrow to finance her consumption.

If Wanda's Income Is Reduced to Zero After She Loses