Which of the following is correct?
A)As disposable income increases, the real interest rate rises.
B)As disposable income decreases, saving decreases.
C)The higher a household's wealth the greater is its saving.
D)Both B and C are correct.
E)Both A and C are correct.

Question

Quizplus · Accepted Answer

As disposable income decreases, saving typically decreases because there is less income available to allocate towards savings after covering necessary expenses.

Which of the Following Is Correct