When a person gets an increase in current income,what is likely to happen to consumption and saving?
A)Consumption increases and saving increases.
B)Consumption increases and saving decreases.
C)Consumption decreases and saving increases.
D)Consumption decreases and saving decreases.

Question

Quizplus · Accepted Answer

When a person's current income increases, typically, both consumption and saving increase. This is because the person has more disposable income, part of which is likely to be spent on goods and services (increasing consumption) and part of which may be saved for future use (increasing saving).

When a Person Gets an Increase in Current Income,what Is