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Money Supply and Inflation

The distance ...

Question

The distance between the line of consumption and the income curve after the intersection of both the curves is termed as __________.

A

investment

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B

savings

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C

dissavings

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D

none of the above

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Solution

The correct option is A savings
Savings refers to the amount of the income which is not spend on the consumption of the commodities. It is the distance between the consumption curve and the income curve after the intersection.

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