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what is the savings rate?
A- proportion of disposable income spent to income saved
B- percentage of people who save a significant amount of their income
C- rate of interest paid on bank account savings
D- difference between rate charged to borrow and rate paid on savings

Respuesta :

Topmadworld
Hey there,
The answer to your question is A, proportion of disposable income spent to income saved

Hope this helps :))

~Top
amniotecardamom

The first answer is correct (A)

Savings are the portion of the National Income that is not used with consumption and transfers, that is, income that has been saved. The savings rate is a measure of the percentage of national income saved in relation to GDP. It means how much GDP has been saved and can be turned into investment.

In economic theory, the concept of savings is synonymous with investment: S = I, that is to say that saving is the country's investment potential, ie the total saved income is the economy's maximum sustainable investment capacity.

Thus, the savings rate is an important indicator of a country's economic development capacity!

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