Definition of savings in macroeconomics
Hi,
My question concerns the macroeconomic definition of savings.
In the textbook by Olivier Blachard, it says that S(private) = Yd - C
Why is disposable income that is not consumed automatically considered to be saved? It could also be invested!
Would be really nice, if someone could help. Thank you!
My question concerns the macroeconomic definition of savings.
In the textbook by Olivier Blachard, it says that S(private) = Yd - C
Why is disposable income that is not consumed automatically considered to be saved? It could also be invested!
Would be really nice, if someone could help. Thank you!
Original post by malich
Hi,
My question concerns the macroeconomic definition of savings.
In the textbook by Olivier Blachard, it says that S(private) = Yd - C
Why is disposable income that is not consumed automatically considered to be saved? It could also be invested!
Would be really nice, if someone could help. Thank you!
My question concerns the macroeconomic definition of savings.
In the textbook by Olivier Blachard, it says that S(private) = Yd - C
Why is disposable income that is not consumed automatically considered to be saved? It could also be invested!
Would be really nice, if someone could help. Thank you!
Because investment is diverse so you must specify where you have invested but saving is only on any financial institution. for further help with economics assignments; antonymburu259@gmail
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