CBSE Class 12-commerce Answered
How is borrowing a negative saving?
Asked by anujbajpai44 | 25 May, 2020, 06:13: PM
Expert Answer
Dis-savings refer to the negative savings i.e. using the past savings or expenses met by borrowing.Dis-savings are done when the consumption expenditure is greater than the income.We call this autonomous consumption (made when income is zero) and is income inelastic.To meet this consumption expenditure, the past savings are used. or people borrow money.This is called dis-savings or negative savings.
Answered by Christina | 26 May, 2020, 09:01: AM
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