If Michelle's income is reduced to zero after she loses her job, her consumption will be and her saving will be O greater than zero; greater than zero less than zero; greater than zero O greater than zero; less than zero O less than zero; less than zero
If Michelle's income is reduced to zero after she loses her job, her consumption will be and her saving will be O greater than zero; greater than zero less than zero; greater than zero O greater than zero; less than zero O less than zero; less than zero
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Introduction
Income of an individual is divided between consumption and savings of an individual. Consumption refers to the income spent on goods and services. While savings is the income not spent, rather saved for future consumption or in need of emergency. Increased income is also further divided in increasing the consumption as well as savings.
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