ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase your income.
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increase your expenses.
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decrease your income.
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use your credit card instead of paying cash.
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Detailed explanation-1: -As incomes rise, households tend to have a higher marginal propensity to save. This is because with higher incomes there is a diminishing marginal utility to consumption – households with extra income are more likely to save it.
Detailed explanation-2: -In the long term, a higher saving rate will generally lead to higher levels of economic output, up to a point. When individuals save a portion of their income, those savings are generally loaned to businesses to finance new investments.
Detailed explanation-3: -Saving in economics In economics, saving is defined as after tax income minus consumption. The fraction of income saved is called the average propensity to save, while the fraction of an increment to income that is saved is called the marginal propensity to save.
Detailed explanation-4: -Get a side hustle. Lean into the power of a good side hustle. Ask for a raise. Okay, this one sounds a little forward, and it won’t work for everyone. Work overtime. Find a better-paying job. Sell stuff. Freelance. Check your tax withholdings. Pay off your debt. More items •14-Sept-2022