ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the same thing as disinvesting.
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that households are spending more than their current incomes.
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that saving and investment are equal.
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that disposable income is less than zero.
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Detailed explanation-1: -Dissaving is negative saving. If spending is greater than disposable income, dissaving is taking place. This spending is financed by already accumulated savings, such as money in a savings account, or it can be borrowed. Household dissaving therefore corresponds to an absolute decrease in their financial investments.
Detailed explanation-2: -Key Takeaways. Dissaving is the opposite of saving. It means to spend above one’s income by dipping into savings, buying on credit, or borrowing money. Governments can be dissavers, too.
Detailed explanation-3: -Answer and Explanation: Households dissave when they spend more than they earn. Households dissave by borrowing through the use of credit cards and using their savings to finance consumption. Everyone can’t dissave at the same time because banks do not have enough money to finance all that extra consumption.
Detailed explanation-4: -Households can consume more than their current incomes by: Liquidating (selling for cash), accumulated wealth, or borrowing. The percentage of total income that is consumed.
Detailed explanation-5: -Saving can be negative when consumption is greater than income.