The part of income which is not spent on consumption is called _______.
A
expenditure
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B
saving
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C
investment
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D
public debt
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Solution
The correct option is B saving Savings refers to the part of the income which is not spent on the consumption of goods and services in the economy. It is that portion of the income which is kept aside for an instant and then re-invested into some asset in order to generate more income through these savings.