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From course:

Economics A Level

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Question:

What is different about Wealth and Income? Why may they be Similar?

Author: go kys



Answer:

-Income is a FLOW of Money while Wealth is a STOCK of Money -The Wealth isn’t being used in the Circular Flow, but can be at some Point [Depends on Liquidity] -But both can have a Correlation. High Income people will have High Wealth eg as they can Purchase more Expensive Items, and more Money to Save


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go kys
go kys