1 answer

Saving is the portion of A. investment that is spent on machinery. B. disposable income that...

Question:

Saving is the portion of

A.

investment that is spent on machinery.

B.

disposable income that is consumed.

C.

disposable income that is not consumed.

D.

stock of consumption.

Which of the following statements best reflects the relationship between saving and

savings​?

A.

Saving and savings are both stock variables.

B.

Saving and savings are both flow variables.

C.

Saving is the total amount not consumed whereas savings refers to the amount placed into a savings account.

D.

Saving is a flow​ variable; savings is a stock variable.


Answers

Saving is a portion of disposable income that is not consumed and value of savings would be disposable income minus all the expenditures and therefore in this regard

(C) is the answer to this question

Because it is not a part of disposable income and not related to consumption

(A,B,D) are wrong.

Saving is a flow variable because it is a total amount in a particular period of time measured while savings is a stock variable because it is an accumulation

Therefore (D) is the answer

Because savings account and savings are totally different and saving is a flow variable while savings is a stock variable

(A,B,C) are wrong

.

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