Other things constant, the slope of the savings function shows us that:
A) increases in the level of national income results in increases in the level of planned saving.
B) the level of planned saving will increase if there are increases in the real interest rate.
C) any increase in the level of planned saving will be accompanied by a reduction in the level of planned investment.
D) as the level of income rises, consumers will spend less and save more out of each extra dollar of income.

Question

Quizplus · Accepted Answer

The slope of the savings function indicates the relationship between income and savings, showing that as national income increases, planned savings also increase, assuming other factors remain constant.

Other Things Constant, the Slope of the Savings Function Shows