In a Graph of the Relationship Between Income and Saving

question 179

Multiple Choice

In a graph of the relationship between income and saving, economists generally consider

• A) income to be the independent variable and place it on the vertical axis.
• B) income to be the dependent variable and place it on the horizontal axis.
• C) saving to be the dependent variable and place it on the vertical axis.
• D) saving to be the independent variable and place it on the vertical axis.

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Definitions:

Unsecured Debt

A type of debt or general obligation that does not have collateral backing and is issued solely based on the creditworthiness and reputation of the issuer.

Credit Standing

An assessment of a person or entity's ability to repay debts, often influenced by past borrowing and repayment history.

Collateral

An asset pledged as security for repayment of a loan, forfeitable in the event of a default.

Unsecured Loans

Loans that are provided without requiring collateral from the borrower.