The saving schedule is drawn on the assumption that as income increases,
A) saving will decline absolutely and as a percentage of income.
B) saving will increase absolutely but remain constant as a percentage of income.
C) saving will increase absolutely but decline as a percentage of income.
D) saving will increase absolutely and as a percentage of income.

Question

Quizplus · Accepted Answer

The saving schedule assumes that as income increases, both the absolute amount of saving and the percentage of income saved will increase. This is because with higher incomes, individuals have more disposable income, which allows them to save more both in absolute terms and as a proportion of their income.

The Saving Schedule Is Drawn on the Assumption That as Income