Which of the following best explains what is happening when disposable income equals zero?
a. All consumption has ceased.
b. Income is positive but stagnant.
c. All money is being saved instead of spent.
d. Savings or credit is being used to pay for necessities.
d. Savings or credit is being used to pay for necessities.
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National saving is defined as the amount of
A) business saving. B) household saving. C) business saving and household saving. D) private saving and government saving.
Cold weather in the Midwestern and eastern United States increases the popularity of vacations in sunny California. At the same time, the hotel employees' union in California negotiates a significant pay increase for its members. The likely impact on the hotel market in California is: a. an increase in the price of hotel rooms and an increase in hotel room rentals
b. an increase in the price of hotel rooms and a decrease in hotel room rentals. c. an uncertain effect on the price of hotel rooms, but an increase in the quantity of hotel rooms rented. d. an increase in the price of hotel rooms, but an uncertain effect on the quantity of hotel rooms rented.