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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 | |
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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