How do households dissave? where do they get the money to finance their extra consumption? can everyone dissave at the same time

Question

VikaD [51]

3 years ago

10

How do households dissave? where do they get the money to finance their extra consumption? can everyone dissave at the same time

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Social Studies

1 answer:

Talja [164] · Answer 1 · 2021-12-21T09:37:45+03:00

Households dissave when en their consumption exceeds their incomes. The extra money comes from two sources: credit and past incomes, also known as savings. When a house dissaves it can either borrow money from financial institutions or spend money that was previously saved. Everyone cannot dissave at the same time because banks would not have enough money to fund everybody's excessive consumption.