When Desired Consumption Exceeds Disposable Income,desired Saving Is ________; When

question 29

Multiple Choice

When desired consumption exceeds disposable income,desired saving is ________; when desired consumption is less than the disposable income,desired saving is ________.

• A)negative; negative
• B)positive; negative
• C)negative; positive
• D)positive; positive
• E)zero; positive

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Definitions:

Avoidable Interest

Interest cost on funds expended on a qualifying asset that could be avoided if the expenditure had not been made.

Economic Benefit

The gain received from a product or service, often measured in terms of increased utility or revenue, minus associated costs.

R&D Costs

Expenses incurred during the research and development phase aimed at producing new products or processes.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures used in the United States.