Distinguish between: 4) Consumption and Saving

Distinguish between:
4) Consumption and Saving

Consumption
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.
Example: Expenditure incurred on purchase of food, clothes etc
Example: Amount deposited in fixed deposits.

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