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The relation between consumption and savings are:
Inverse
Direct
Inverse and direct both
Neither inverse nor direct.
- Option 1: Inverse
- This means as consumption increases, savings decrease, and vice versa. People spend more and save less, or save more and consume less.
- Option 2: Direct
- Suggest that both consumption and savings rise together. This is not typical in a straightforward scenario.
- Option 3: Inverse and direct both
- This implies a complex relationship where both behaviors may occur simultaneously in different contexts or timeframes.
- Option 4: Neither inverse nor direct
- Indicates a lack of a definable relationship between consumption and savings, which doesn’t align with typical economic understanding.
- Correct Answer: Option 1 - Inverse
By: santosh ProfileResourcesReport error
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