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प्रश्न
‘As the income increases, people tend to save more’. Justify the given statement.
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उत्तर
At a lower level of income, a consumer spends a larger proportion of his/her income on consumption expenditure (basic survival requirements). As the income increases, owing to the psychological behavior of a consumer (rational), people tend to consume less and save more for future uncertainty.
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संबंधित प्रश्न
Read the following statements carefully and choose the correct alternative from the following:
Statement 1 - Demonetization was the step taken by the Government of India in order to tackle the problems of corruption, black money, terrorism, and circulation of fake currency in the Indian Economy.
Statement 2 - Demonetization has ensured improved tax compliance in India over the period of time.
A two-sector economy consists only of which two sectors?
What does \[I\] represent in \[AD=C+I\]?
What does \[\overline{I}\] represent?
Which statement defines autonomous expenditure?
Which component is relatively stable?
Which expression is given for Total Autonomous Expenditure?
In the equilibrium equation, what does the RHS represent?
What is the change in inventories called?
Which types of Inventory Investment may occur?
When is Inventory Investment positive?
If planned demand is less than planned output, what occurs?
Which formula represents Disposable Income?
Which equation represents equilibrium with government?
Which term becomes part of autonomous expenditure in the government extension?
In the absence of which items does GDP equal National Income?
