Correct Option: A

According to the Keynesian Consumption theory, “men are disposed, as a rule and on average, to increase their consumption as their income increases, but not by as much as the increase in their income.” Another feature of consumer behavior is that when income increases, people do not spend their entire incremental income on consumption. They save a part of it for their financial security during the period of unemployment, illness, etc. In simple words, the marginal propensity to consume decreases, i.e., households spend a decreasing proportion of marginal income on consumption. That is why families on lower income scale save a lower percentage of their income and those on higher scale of income save a larger proportion of their income.