Multiple choice

As used by economists the word 'saving' means

  1. the part of income not spend on consumption during some given time period

  2. the total amount of money which people have accumulated in the past

  3. the same thing as investment, since S = I when the economy is in equilibrium

  4. the amount of money people don't spend in the course of some given period
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Savings is that part of income not spend on consumption during some given time period.

Keep practicing — related questions