In a Graph of the Relationship Between Income and Saving

question 22

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:

Trade Receivables

Trade receivables are amounts owed to a business by its customers resulting from the sale of goods or services on credit.

Sales Transactions

These are dealings or agreements carried out between two parties, where goods or services are exchanged for money or other considerations.

Interest Calculation

A method used to determine the amount of interest owed or earned over time, based on the principal amount, the rate of interest, and the period over which it is calculated.

Service Performed

The completion of an awaited task or the provision of work for customers as part of a contractual agreement.