As disposable income increases,_____.A) consumption and saving both increaseB) consumption increases and saving decreasesC) consumption and saving both decreaseD) consumption decreases but saving increasesE) saving increases,but we cannot predict what happens to consumption

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Tommy Nelson · Accepted Answer

Final Answer : A, Explanation :  When disposable income increases, individuals have more money available after taxes, which typically leads to an increase in both consumption (spending on goods and services) and saving, as people can afford to spend more and also set aside more money for the future.

As disposable income increases,_____.

A) consumption and saving both increase
B) consumption increases and saving decreases
C) consumption and saving both decrease
D) consumption decreases but saving increases
E) saving increases,but we cannot predict what happens to consumption

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