Mathematics College

If your income is constant, what will happen to your savings when your expenses increase?

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Answers

Answer 1

Okay, suppose your income is about $100.

You might spend $70 & save $30.

Now, suppose your income remains constant at $100 but your expenses go up to, say, $90. You can see that your savings will reduce or decrease. Now, you'll only have about $10 to save.

=》 So, if your income is constant, then your savings will 'decrease' when your expenses increase.

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