Question

One in the news article titled "news release: disposable income and outlays" says, "personal spending increased $40 billion." an increase in spending is likely the result of an increase in saving. an increase in income. an increase in taxes. a decrease in economic growth.

Answer 1

The best answer for the question would be an increase in income.

The higher the disposable income, the higher the spending that an individual would engage in.

This is related to basic economic principles: More resources to satisfy the needs. The individual now have more resources to satisfy his wants and needs that the market has to offer.

Unfortunately, the higher the spending does not always correlate with higher savings.