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| Q. |
Which of the following relations always holds true? |
| A. | Income = Consumption + Investment |
| B. | Income = Consumption + Saving |
| C. | Saving = Investment |
| D. | Income = Consumption + Saving + Investment |
| Answer» B. Income = Consumption + Saving | |
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Explanation: Consumers do one of two things with their disposable income: They save it or they spend it. So Income = Consumption + Saving. |
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