What Are Savings

question 18

Multiple Choice

What are savings?

• A)Additions or subtractions from debt.
• B)Outlays on household related matters that provide benefit beyond the current year.
• C)The day-to-day financial functions of the household.
• D)Cash flows that come from changes in debt.
• E)None of the above.

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Definitions:

Consumption Function

A mathematical expression in economics showing how total consumption is related to the gross national income.

Consumption Function

A financial equation that illustrates the correlation between overall consumption and the gross national income.

Aggregate Income

The total income earned by all individuals or entities in an economy, including wages, profits, rents, and investment income, before taxes.

Aggregate Income

The total amount of income generated by all individuals and entities within an economy over a specific time period.