[PDF] consumption saving problem

As mentioned, the consumption/saving problem faced by the household is as- sumed to involve only one consumption good. The composition of consumption in  Autres questions
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  • What is the consumption savings problem?

    The consumption-savings problem is of the simplest possible kind: there is no uncer- tainty, and current resources simply have to be divided into current consumption and savings.

  • What is the relationship between consumption and saving function?

    Relationship between Consumption and Savings Income = Consumption + Savings The largest part of total spending is Consumption.
    C= f(Y) If income increases, consumption also increase, but not as quickly as income.

  • What is the difference between consumption and savings?

    Consumption is that part of the income that is spent on buying goods and services.
    This is the unspent part of the income.
    It is the expenditure incurred by households on the gross domestic product.
    The savings are used for investment in business enterprises.

  • What is the difference between consumption and savings?

    Both consumption and saving form two parts of a person's disposable income.
    The way consumption depends on the level of disposable income, saving also depends on the same.
    Saving function gives the relationship between saving and income in the economy.

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