Disposable income not spent for consumer goods is called?

Disposable income not spent for consumer goods is called?

• A. Investment
• B. Savings
• C. Appreciate
• D. Bonds

Answer: (B)

The main idea here is savings. When households receive disposable income, they either spend some of it on goods and services or set aside the rest. The portion not spent on consumer goods is savings, the amount kept for future use and possibly ofress in banks or invested. In macro terms, disposable income minus consumption equals savings, highlighting its role as the non-spent portion of income. This differs from investment, which is spending on capital goods to support future production; appreciate refers to an increase in value, and bonds are a type of asset that can hold savings but are not the act of saving itself.

The main idea here is savings. When households receive disposable income, they either spend some of it on goods and services or set aside the rest. The portion not spent on consumer goods is savings, the amount kept for future use and possibly ofress in banks or invested. In macro terms, disposable income minus consumption equals savings, highlighting its role as the non-spent portion of income. This differs from investment, which is spending on capital goods to support future production; appreciate refers to an increase in value, and bonds are a type of asset that can hold savings but are not the act of saving itself.