You save the same dollar amount from each paycheck during your career. As your income increases, your savings rate will
A) increase.
B) decrease.
C) stay the same.
D) More information is needed to determine what effect this action will have.

Question

Quizplus · Accepted Answer

If you save a fixed dollar amount from each paycheck, as your income increases, that fixed amount becomes a smaller percentage of your income, thus your savings rate decreases.

You Save the Same Dollar Amount from Each Paycheck During