Saving is Group of answer choices the sum of the funds people hold in their checking accounts. after-tax income that is not spent on consumption. always equal to consumption. equal to disposable income plus consumption.

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Summer Lambert

13 March, 10:52

Saving is Group of answer choices the sum of the funds people hold in their checking accounts. after-tax income that is not spent on consumption. always equal to consumption. equal to disposable income plus consumption.

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Augustus Mclean · Answer 1

B. After tax Income that is not spent on consumption

Explanation:

Savings

This is defined as the amount remaining after an individual spending is subtracted from the amount if disposable income or after tax income earned in a given period of time. Savings is Disposable income less Comsumer's spending or expenditure.

Savings = Disposable Income - Consumer expenditure

S = I - C

After establishing that, it can be inferred that Savings is NOT always EQUAL to Consumption, neither is Savings EQUAL to consumption plus income.

Savings refers to money put aside for future usage rather than spending it immediately like money found in Checking (current) accounts.

The money (income) remaining after consumptions refers to Savings.