Which of the following influences household saving? I.The real interest rate
II.Disposable income
III.Expected future income
A)I only
B)I and III only
C)I and II only
D)I, II, and III
E)II and III only

Question

Quizplus · Accepted Answer

Household saving is influenced by all of the options given. The higher the real interest rate, the more likely individuals are to save money. Disposable income also influences saving because the more extra income a household has, the more likely they are to save it. Additionally, expected future income can also play a role in saving behavior as individuals may save more if they anticipate a decrease in future income.

Which of the Following Influences Household Saving? I