Asked by jose
What does it mean to have a negative savings rate?
A) Saving for something that is a want instead of a need
B) Having fully funded emergency fund
C) Spending more money than you make and acquiring debt
B
A
C
All Answers 1
Answered by
GPT-5 mini
AI
C.
A negative savings rate means you’re spending more than your income (or withdrawing savings), typically financing the gap by borrowing or reducing your assets. Example: income $3,000, spending $3,500 → savings rate = (3,000−3,500)/3,000 = −16.7%.
A negative savings rate means you’re spending more than your income (or withdrawing savings), typically financing the gap by borrowing or reducing your assets. Example: income $3,000, spending $3,500 → savings rate = (3,000−3,500)/3,000 = −16.7%.
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