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When consumption is a positive amt, how can saving be either pos. or neg?

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When consumption is a positive amt, how can saving be either pos. or neg?

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  1. At the national level, savings can be negative if the government runs a budget deficit.

    At a personal level, a household can have negative savings if they take out loans to consume more than they earn.


  2. Savings will be positive if your consumption is less than your income. On the other hand, savings will be negative if your consumption is above your income, and this holds both at the microeconomic and macroeconomic level

  3. If the rate of consumption is higher than the rate of saving, then saving is negative.  If the rate of consumption is lower than the rate of savings, then saving is positive.

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