If disposable income and consumption in an economy are equal,

A) consumers must be incurring debt.
B) consumption must also be equal to saving.
C) household saving must be zero.
D) None are true.

Question

If disposable income and consumption in an economy are equal,A) consumers must be incurring debt.B) consumption must also be equal to saving.C) household saving must be zero.D) None are true.

Larneisha Daniels · Accepted Answer

Final Answer : C, Explanation :  When disposable income and consumption are equal, it means all income is being spent and nothing is being saved, hence household saving is zero.

If disposable income and consumption in an economy are equal,

A) consumers must be incurring debt.
B) consumption must also be equal to saving.
C) household saving must be zero.
D) None are true.

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