As disposable income increases, there is a ________ the saving function.

Question

Quizplus · Accepted Answer

An increase in disposable income typically results in a movement along the saving function, not a shift of the function itself or a change in its slope. This is because the saving function represents the relationship between the level of disposable income and the amount of saving, and an increase in income would simply mean moving to a different point along the same curve, assuming the propensity to save remains constant.

As Disposable Income Increases, There Is a ________ the Saving