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Economics miscellaneous

  1. According to the classical system, saving is a function of
    1. Income
    2. The interest rate
    3. The real wage
    4. The Price level
Correct Option: A

Saving function is a mathematical relation between saving and income by the household sector. This function captures the saving-income relation, the flip side of the consumption-income relation that forms one of the key building blocks for Keynesian economics.



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