SAVING: The after-tax disposable income of the household sector that is not used for consumption expenditures. In general terms, saving is the use of income to purchase legal claims through financial markets rather than the direct purchase of physical goods and services. In the macroeconomic world modeled by the circular flow, saving is the diversion of household income away from consumption and into the financial markets. In this model, saving is a primary source of funds used for business investment expenditures for capital goods. Saving is also used to finance government expenditures.

     See also | income | consumption | investment | financial markets | legal claims | national income | personal income | disposable income | government purchases | savings accounts | paper economy | circular flow |

SAVING, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: June 24, 2018].

Additional information on this term can be found at:

WEB*pedia: saving

Back to the GLOSS*arama

A table or chart that represents the relation between saving by the household sector and income. A saving schedule is commonly used for a basic, instructional presentation of aggregate saving activity by the household sector and is also used as a source of numbers for deriving the saving line. The key measures derived from the saving-income relation in the schedule are average propensity to save and marginal propensity to save. The consumption schedule is comparable, and more important, table for the relation between consumption and income.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time browsing about a thrift store seeking to buy either a New York Yankees baseball cap or a solid oak entertainment center. Be on the lookout for small children selling products door-to-door.
Your Complete Scope

This isn't me! What am I?

-- Roberto Goizueta, Coca-Cola CEO

User Feedback