Which of the Following Occurs When Disposable Income Is Zero

question 17

Multiple Choice

Which of the following occurs when disposable income is zero?

• A)consumption must be zero
• B)saving must be zero
• C)saving must be positive
• D)consumption is negative
• E) none of the above

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Definitions:

Trading Securities

Financial securities bought and held primarily for the purpose of selling them in the near term to profit from price changes.

Balance Sheet

A report that details a company's financial status by listing its assets, liabilities, and owners' equity at a certain date, offering a foundation for calculating return rates and analyzing its financial framework.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or carry out a service.

Valuation Allowance

A reserve set aside against deferred tax assets due to uncertainty regarding their realization in the future.