Question

comperative study of income and savings

Answer 1

Answer:

Income, expenditure and savings are interrelated. The expenditure incurred on the various needs is vital to enhance the health status and welfare of households. On the other hand, savings are essential for future use. According to the theory of consumption, consumption patterns vary according to income levels of households; higher income household tends to allocate smaller percentage for daily needs such as food and clothing and higher spending on luxury goods The percentage of.saving is low at low income levels, increased as income increased and then decreased again when the income continues to grow.