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Question

________ function shows functional relationship between savings and income.

A
Dis-saving
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B
Saving
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C
Consumption
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D
Investment
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Solution

The correct option is B Saving
The Saving function shows functional relationship between savings and income.
There is a direct relationship between savings and income.
As income increases, savings also increase.
S=YC
S-Saving
Y-Income
C-Consumption

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