To determine at which level of income the saving is negative, we need to understand the relationship between income and saving. Saving is the difference between income and expenditure. If expenditure exceeds income, then saving becomes negative.
Income levels:
- Zero level of Income
- Low level of Income
- High level of Income
- Maximum level of Income
Explanation:
- At the zero level of income (A), there is no income to save, so the saving is automatically zero or negative.
- At a low level of income (B), individuals may have enough income to cover their basic expenses but not enough to save, resulting in negative saving.
- At a high level of income (C), individuals have enough income to cover their expenses and save, so the saving is positive.
- At the maximum level of income (D), individuals have a surplus income after covering their expenses, resulting in a high positive saving.
Conclusion:

Introduction:
The concept of saving refers to the portion of income that is not consumed but instead set aside for future use. It is the difference between disposable income and consumption expenditure. Saving can be positive or negative depending on the level of income. In this case, the question asks about the scenario where saving is negative at a specific level of income.

Explanation:
In order to understand why saving is negative at a zero level of income, let's consider the following points:

1. Saving and Income:
- Saving is typically expected to be positive as income increases. This is because individuals have more disposable income to allocate towards saving when their earnings are higher.
- Conversely, when income is low or nonexistent, saving tends to be either minimal or negative.

2. Zero Level of Income:
- A zero level of income refers to a situation where an individual or household does not earn any income.
- This can occur during periods of unemployment, retirement, or when someone is dependent on others for financial support.

3. Negative Saving:
- When income is zero, individuals are unable to allocate any funds towards saving.
- However, they may still have expenses to cover, such as rent, utilities, or other bills.
- In this situation, individuals may resort to borrowing or utilizing existing savings to meet their financial obligations.
- As a result, saving becomes negative as individuals are using up their savings or going into debt to maintain their expenses.

Conclusion:
In summary, the saving is negative at a zero level of income because individuals are unable to allocate any funds towards saving and are instead relying on existing savings or borrowing to cover their expenses.