Total Income(denoted by Y) is equal to Consumption(denoted by C) and Savings(denoted by S) i.e.,
Y = C + S--Equation 1.
[OR]
Total Income is also equal to Consumption + Investment(denoted by I) i.e., Y= C + I---Equation 2.
Income can be equal to expenditures when whole of the Income is spent and even the part of income which is not to be used is invested and nothing is saved.
Y = C + S--Equation 1.
[OR]
Total Income is also equal to Consumption + Investment(denoted by I) i.e., Y= C + I---Equation 2.
Income can be equal to expenditures when whole of the Income is spent and even the part of income which is not to be used is invested and nothing is saved.