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If income in a closed, private economy is $50 and consumption is $35, what is the amount of savings?Multiple choice question.$15$85$35$50

Question

If income in a closed, private economy is 50andconsumptionis50 and consumption is 35, what is the amount of savings?Multiple choice question.151585353550

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Solution

In a closed, private economy, savings is calculated as the difference between income and consumption.

Here, the income is 50andconsumptionis50 and consumption is 35.

So, Savings = Income - Consumption = 5050 - 35 = $15

So, the amount of savings is $15.

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