For saving to increase,consumption must decrease,ceteris paribus.

Name: For saving to increase,consumption must decrease,ceteris paribus.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is based on the fundamental economic principle of the trade-off between consumption and saving. When individuals consume less, they are able to save more. Consequently, in order for saving to increase, consumption must decrease, assuming all other things remain constant (ceteris paribus).

For Saving to Increase,consumption Must Decrease,ceteris Paribus