The Saving Schedule Is Drawn on the Assumption That as Income

question 127

Multiple Choice

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.

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Definitions:

Information Processing

The methods by which organisms receive, store, retrieve, and manipulate information from their environment.

Generalized Expectations

Beliefs or anticipations about the likelihood of outcomes based on general knowledge or past experiences, without specific evidence for the current situation.

Subjective Estimates

Judgments or evaluations based on personal feelings, tastes, or opinions rather than external evidence.

Internal Locus of Control

A psychological concept referring to individuals who believe they have control over the events of their lives, as opposed to external forces.