What Best Describes What Happens to the Share of Income

question 29

Multiple Choice

What best describes what happens to the share of income spent on food as income increases?

• A) The share increases.
• B) The share decreases.
• C) The share stays the same.

---

Definitions:

U.S. Dollar

The official currency of the United States of America, commonly used worldwide as a reserve currency and standard for international trade.

Kenyan Shillings

The official currency of Kenya, which is subdivided into 100 cents.

Floating Rate System

A currency exchange regime where a country's currency value is allowed to fluctuate in response to foreign exchange market mechanisms.

Government Intervention

Refers to regulatory actions taken by a government to affect its economy, which can include policies and laws to correct market inefficiencies and promote social welfare.