Which of the following is likely to happen as disposable income increases?
A)Savings and consumption both increase.
B)Savings increases, and consumption decreases.
C)Savings decreases, and consumption increases.
D)Savings and consumption both decrease.

Question

Quizplus · Accepted Answer

As disposable income increases, individuals typically have more money to allocate towards both savings and consumption, leading to an increase in both.

Which of the Following Is Likely to Happen as Disposable