Question

Income not used for consumption is:

a. savings
b. spending
c. donations
d. none of the above

Answer 1

Its considered as a Savings. So your answer would be A.

Answer 2

The first alternative is correct (A).

Income not used in the consumption of goods and services is considered a saving. In other words, it is money that you have not spent, just accumulated and will serve to make investments in the future.

Donations and spending decrease the total income, consequently affect savings negatively.