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Question
Fill in the blank with appropriate alternatives given below
That part of income, which is not spent on consumption, is called __________.
Options
expenditure
saving
investment
publicdebt
Solution
That part of income, which is not spent on consumption, is called saving.
Explanation:
Individuals incur expenditure on consumption from the income. However, not all of the income is spent on consumption, rather a part of it remains unspent. This unspent part of the income is called as savings.
Saving = Income – Consumption
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