An increase in disposable income

Name: An increase in disposable income
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in disposable income will result in a movement upward along the saving function. This is because as disposable income increases, individuals tend to save more as they have more money to set aside for future expenses or investment. Therefore, the savings function will move upward on the graph, indicating a higher level of saving at each level of disposable income.

An Increase in Disposable Income