‘As the income increases, people tend to save more’. Justify the given statement
‘As the income increases, people tend to save more’. Justify the given statement.
4 views
1 Answers
At a lower level of income, a consumer spends a larger proportion of his/her income on consumption expenditure (basic survival requirements). As the income increases, owing to the psychological behavior of a consumer (rational), people tend to consume less and save more for future uncertainty.
4 views
Answered