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:

Equitable Assignment

An equitable assignment is the assignment or transfer of rights or interests in a property or contract to another party, recognized by equity and not necessarily by law.

Privity of Contract

A principle stating that only the parties involved in the contract have the rights and obligations under that contract.

Novation

The act of replacing an existing obligation with a new one, thereby extinguishing the original contract and creating a new agreement.

Statutory Assignment

refers to the legal transfer of rights from one party to another, based on statutory laws rather than contractual agreement.