12
practice examMultiple Choice

Practice Exam

Question 12 • Personal Finance

Part A: A person reduces expenses while income stays the same. What happens?

Answer
A
Expenses rise
B
Savings increase
C
Income decreases
D
Debt increases

Explanation

Savings are the amount left after expenses are subtracted from income. If income stays the same and expenses decrease, more money remains, so savings increase. The correct choice is “Savings increase.”

AI-written and checked against the verified answer.

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