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Answer in detail:

Write in detail about saving and investment.

Answer :

Savings is inevitable for capital formation and economic growth. The portion of income not spend on consumption is called savings. Whereas investment means addition to the existing production capacities, such as buying of plant and machinery. Both savings and investments are interlinked.


If the savings are good, it will lead to good investment potential and hence, leading to economic growth.


Savings is done by the consumers, whereas investments are made by entrepreneurs.


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