Question

Which of the following statements concerning consumption is incorrect? Group of answer choices Wealthy people consume more than other people. Expectations about future prices affect consumption. Tax increases reduce consumption. Savings rates decrease as income increases.

Answer 1

Answer:

Savings rates decrease as income increases.

Explanation:

Consumption can be defined as the use of goods and services by the household or end users.

The true and correct statements about consumption are;

1. Wealthy people consume more than other people.

2. Expectations about future prices affect consumption.

3. Tax increases reduce consumption.

The incorrect statement concerning consumption is that, savings rates decrease as income increases because an increase in income generally result in an increase in savings rates.