The slope of a graph with "income" on the horizontal axis and "saving" on the horizontal axis is +0.2. This means that if: (BOTH SAY HORIZONTAL)
A) Income is $100, then saving is $20
B) Income is 0.20, then saving is zero
C) Income increases by $100, then saving will rise by $20
D) Saving rises by $100, then income will rise by $20

Question

Quizplus · Accepted Answer

The slope of 0.2 indicates that for every $1 increase in income, there is a 0.2 increase in saving. Therefore, if income increases by $100, saving will rise by 0.2 x $100 = $20. Thus, choice C is correct. A is incorrect because it assumes that income and saving are directly proportional, which may not be the case. B is incorrect because it uses the slope as the value for income, which does not make sense. D is incorrect because it assumes that saving causes an increase in income, which is not true in this scenario.

The Slope of a Graph with "Income" on the Horizontal