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Choose the Correct Answer: When Income Increases, the Consumption Expenditure _.(A) Increases(B) Decreases(C) Becomes Equal(D) Becomes Zero - Economics

Choose the correct answer:      
When income increases, the consumption expenditure _________.
(a) increases
(b) decreases
(c) becomes equal
(d) becomes zero
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When income increases, the consumption expenditure increases.
Consumption expenditure refers to the total expenditure incurred by all the households in an economy on different types of goods and services in order to satisfy their wants. It shares a positive relationship with income, i.e., as income increases, the consumption expenditure also increases.

Concept: Concept of National Income
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