Showing Blogs From - assignment on economics

The understanding of saving is rather important in order to bring out its importance and also the reason as to why it is important for an individual or at a national level. The most essential aspect here is that the people when deprive some part of their income for consumption it becomes there savings. This amount can be kept in bank accounts and be used later on for different purposes, it is called personal saving. National saving on the other hand is the amount which is inclusive of personal savings along with public savings and the business savings. This amount is largely derived through the medium of taxes which is left after making the expenditures. It can also be said that the interest rates does encourage the level of savings. If the interest rate is higher than the savings would also be rather higher.