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Q. |
According to the classical system, saving is a function of - |
A. | Income |
B. | The interest rate |
C. | The real wage |
D. | The Price level |
Answer» A. Income | |
Explanation: Saving function is a mathematical relation between saving and income by the household sector. This function captures the saving-income relation, the flip side of the consumption-income relation that forms one of the key building blocks for Keynesian economics. |
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