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 II
C) I and III
D) I, II, and III

Question

Quizplus · Accepted Answer

All three factors influence household saving. The real interest rate affects the incentive to save versus spend, disposable income impacts the ability to save, and expected future income influences saving behavior based on anticipated future needs or income changes.

Which of the Following Influences Household Saving