It has been said that a society with high savings rate is a society with a high standard of living. Discuss the link (if any) between saving and standard of living and also explain the overall economic function of profits.

It has been said that a society with high savings rate is a society with a high standard of living. Discuss the link (if any) between saving and standard of living and also explain the overall economic function of profits.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 3TY

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

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It has been said that a society with
high savings rate is a society with a
high standard of living. Discuss the
link (if any) between saving and
standard of living and also explain
the overall economic function of
profits.

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