If High Incomes Inspire More Saving Than Low Incomes ________

question 18

Multiple Choice

If high incomes inspire more saving than low incomes ________.

• A)the average propensity to consume falls as income rises
• B)the marginal propensity to consume rises as income rises
• C)autonomous consumption falls as income rises
• D)the average propensity to consume rises as wealth rises

---

Definitions:

Life-Cycle Benefits

Benefits and support provided by an employer that address different stages of an employee's life, such as childcare, education support, and retirement planning.

Child-Care

Services and support for the care of children, especially those provided during the working day, facilitating parents or guardians to undertake employment or other activities.

Elder-Care

Services and support provided to the elderly population to meet their medical, social, and personal needs, often including healthcare, housing, and daily life assistance.

Pay Compression

Occurs when individuals with substantially different levels of experience, performance abilities, or both are paid wages or salaries that are relatively equal.