Question Which of the following is likely to happen as disposable income increases? Multiple Choice Savings decreases, and consumption increases. Savings increases, and consumption decreases. Savings and consumption both increase. Savings and consumption both decrease.
ZLRYE6 The Asker · Economics
Transcribed Image Text: Which of the following is likely to happen as disposable income increases? Multiple Choice Savings decreases, and consumption increases. Savings increases, and consumption decreases. Savings and consumption both increase. Savings and consumption both decrease.
More Transcribed Image Text: Which of the following is likely to happen as disposable income increases? Multiple Choice Savings decreases, and consumption increases. Savings increases, and consumption decreases. Savings and consumption both increase. Savings and consumption both decrease.
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As disposable income increases, consumers will have more money to spend on goods which will raise consumption. When Income rises, consu ... See the full answer