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प्रश्न
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
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उत्तर
The consumer does not spend the entire increase in his income on consumption. Rather, a portion (generally fixed) of the increase in income is kept as savings. Thus, as the income increases, savings also increase. This relationship between the savings and income is depicted in a functional form by the savings function. The savings function can be expressed as:
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