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Which of following relations always hold...

Which of following relations always holds true ?

A

(a)Income = Consumption + Investment

B

(b)Income = Consumption + Saving

C

(c)Saving = Investment

D

(d)Income = Consumption + saving + Investment

Text Solution

Verified by Experts

The correct Answer is:
B
Consumers do one of two things with their disposalbe income : They save it or they spend it. So Income = Cosumption + Saving.
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