The saving function shows a __________srelationship between __________.
A) negative; real GDP and saving
B) positive; disposable income and saving
C) positive; disposable income and dissaving
D) negative; disposable income and consumption expenditure

Question

Quizplus · Accepted Answer

The saving function shows a positive relationship between disposable income and saving. As disposable income increases, people tend to save more. Similarly, as disposable income decreases, people tend to save less or even dissave (spend from their saving). The other options are incorrect because the saving function has a positive relationship with disposable income and savings, not a negative relationship with real GDP and savings, positive relationship with disposable income and dissaving, or negative relationship with disposable income and consumption expenditure.

The Saving Function Shows a __________Srelationship Between __________

The Saving Function Shows a Srelationship Between