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Q:

Compared to rich the poors saving is–

  • 1
    A larger part of their income
  • 2
    An equal part of their income
  • 3
    A small part of their income
  • 4
    All of their incomes
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Answer : 3. "A small part of their income"
Explanation :

 A necessary level of consumption produces differences in income and saving. This implies that the poor household have lower saving rates because they cannot “afford to save” after buying the necessities.

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