Asked by Francine Fiscor on Jun 08, 2024
Verified
As disposable income decreases,saving decreases.
Disposable Income
Income that remains for saving or spending after direct taxes (such as income tax) have been deducted from an individual's earnings.
Saving
The process of setting aside a part of current earnings for future use.
- Understand the connection between spending, savings, and earnings.
Verified Answer
JR
Jason RamsayJun 09, 2024
Final Answer :
True
Explanation :
Disposable income is the amount of money left after paying for necessary expenses such as rent, bills, and food. If disposable income decreases, people have less money available to save. Therefore, saving decreases.
Learning Objectives
- Understand the connection between spending, savings, and earnings.