Question

In: Economics

When consumption expenditure is less than-----, saving takes place and --- rises. Fill in the blanks....

When consumption expenditure is less than-----, saving takes place and --- rises.

Fill in the blanks.

Wealth; net income

Net income; wealth

Net income; depreciation

Investment expenditure; wealth

Solutions

Expert Solution

The correct answer is 'Option B'.

When the consumption expenditure is less than the net income then this means that the people are not spending the entire income and saving the resg of the income which is not used for consumption purposes. This increase in savings will increase the wealth of the people. Therefore, the correct answer is 'Option B'.

Rahul Sunny answered 2 years ago
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