He saves Rs. 67.5 (take 450 times .85- since its a % and then subtract that from 450)
The answer is if the bank cannot make profit on the loan
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Answer:
Consumption is influenced by advertisements for products that are consumable today and savings from ads that advocate in investing tomorrow.
Explanation:
Both are important to run the circular flow of economy. If a person invests savings on a product, so there should be someone to consume it, this will help in achieving equilibrium point between aggregate demand and aggregate supply.
Increase in one shall result in decrease in other and in both cases either there will be more products to be consumed rather than the actual consumption resulting in surplus if there is excess saving or vice versa .
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Explanation:
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