Which of the following is correct?

Question

Quizplus · Accepted Answer

When disposable income decreases, individuals may have less money available to save, leading to a decrease in saving. However, it is important to note that this relationship may not hold true in all circumstances, as other factors can impact saving behavior.

The other answer choices are incorrect:
A) As disposable income increases, individuals may have more money available to save, which could result in an increase in real interest rates. However, there is not a direct relationship between disposable income and real interest rates. 
C) While a decrease in saving could result in an increase in disposable income in the short-term, this relationship may not hold true in the long-term. 
D) As saving increases, households may have more funds available to invest, which could lead to an increase in investment rather than a decrease.

Which of the Following Is Correct