Distinguish between:
4) Consumption and Saving
Consumption
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Savings
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Consumption is that part of the income that is spent on buying goods and services.
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This is the unspent part of the income.
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It is the expenditure incurred by households on the gross domestic product.
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The savings are used for investment in business enterprises.
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Example: Expenditure incurred on purchase of food, clothes etc
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Example: Amount deposited in fixed deposits.
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