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If the consumption is greater than current income how can be sustained?
Wiki User
∙ 14y ago
When consumption is greater than current income, the situation in itself is non-sustainable. However, if the situation is considered temporary, financing is usually used to sustain the business until they are able to generate the cash flows necessary to cover consumption.
Wiki User
∙ 14y ago
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What is Income not spent on current consumption or taxes is?
saving
Is your credit line is based on your monthly income your current debt and length of residence at your current address?
Yes, your credit line is based on your monthly income your current debt and length of residence at your current address.
What is rationale of saving decision?
According to the law of economics, Income is a function of savings and consumption. Saving decision by an individual helps to maintain resources for future consumption whenever he feels the demand to.
What is the formula for calculating the net income component percentage?
Net income is the income of a business after deducting taxes and other current liabilities. It is sales - Expenses.
Why do businesses or individuals that are considering giving you credit look at your debt-to-income ratio?
They must determine if you have enough income to pay your current debts and also take on a new monthly loan payment.They must determine if you have enough income to pay your current debts and also take on a new monthly loan payment.They must determine if you have enough income to pay your current debts and also take on a new monthly loan payment.They must determine if you have enough income to pay your current debts and also take on a new monthly loan payment.
What is Income not spent on current consumption or taxes is?
saving
Why income can influence the consumption?
Although the formation of the question is a bit odd,here's the answer. Income in general has a direct impact on consumption. The greater the amount of income the greater the amount of consumption; simply stated as one's income increase he/she spends more of it on many different products or services. Conversely, as the quantity of income decreases,so does consumption. In this case of decreased income the discretionary money is spent mostly on necessities and basic foods,etc.
Suppose a family's consumption exceeds its disposable income This means that its?
Apc is greater than 1
If income in zero consumption in the short term will normally be?
greater than zero! Sure, it is correct, but not clear the reason
Income not used for consumption is considered as what?
The income that is not used for consumption is called disposable income
What is the difference between consumption and income?
the difference between income and consumption
Income consumption curve?
income consumption curve is the collection of points of the consumer's equilibrium resulting from varying income.....
If a good is a normal good what will happen to its consumption as income increases?
The definition of a Normal Good is: a good that will increase in consumption as income increases and decrease in consumption as income decreases.
Why is a current account surplus equivalent to foreign investment?
A country where income is greater than spending, has saving greater than investment, and a current account surplus. The excess of income over spending must be balanced by foreign investment, so there will be a financial account deficit to match the current account surplus.
What is Market Consumption Capacity?
Market Consumption Capacity is basically the income of the middle class. (The percentage share of the middle class in consumption/income)
Are consumption and income positively related or are they negatively related?
They are positively, or directly related. An increase in income is associated with an increase in income; a decrease in consumption accompanies a decrease in income.
The consumption function relates the consumption expenditure decisions of households?
to the level of disposible income
