The Saving Schedule Is Such That as Aggregate Income Increases

question 103

Multiple Choice

The saving schedule is such that as aggregate income increases by a certain amount, saving:

• A)increases by the same amount as the increase in income.
• B)does not change.
• C)increases.
• D)decreases.

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Definitions:

Tax Bracket

A range of incomes taxed at a certain rate within a tax system, where the tax rate typically increases as income rises.

Before-tax Yield

The earnings or return on an investment before the deduction of any taxes.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, expressed as a ratio or percentage of the investment’s gain relative to its cost.

Salary Contribution

The portion of an individual's salary that is allocated to various types of benefits or investment plans, such as a retirement fund.