When a Person Gets an Increase in Current Income,what Is

question 89

Multiple Choice

When a person gets an increase in current income,what is likely to happen to consumption and saving?

• A)Consumption increases and saving increases.
• B)Consumption increases and saving decreases.
• C)Consumption decreases and saving increases.
• D)Consumption decreases and saving decreases.

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Definitions:

Household

A living arrangement in which an individual or group of people residing at the same address share domestic responsibilities.

Organizational Buyers

Organizational Buyers are entities like companies, governments, and institutions that purchase goods or services for use in production processes, for resale, or for operational needs.

Services

Economic activities that provide intangible benefits or fulfill the needs of consumers, such as consulting, banking, or repair.

Intangible Items

Items that cannot be touched or physically measured, such as services, digital products, or intellectual property.