Saturday 18 April 2009

Savings

Saving is "deferred spending"
A perference to consumer tomorrow rather than today
Saving is not investment
But saving flow into the financial system
.......and help to provid the funds for investment spending by firms
Introfuction
The household saving ratio is measured as the percentage of real disposable income that is saved rather than spent
Trend in the Saving Ratio
The saving ratio is the percentage of disposable income that is saved rather than spent
Saving provide a financial safety net for households
A fall in the saving ratio means that household are choosing spending today rather than tomorrow
This may be acccompanied by a build up of consumer debt which will have to be repaid at some point in the future
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4 comments:

  1. Mary18 April 2009 at 19:51

    hiya, Lance.
    Chris has asked me to make you think..

    1. what are the differences between RPI and CPI?
    2. why base rates and interest rates in some banks differ?
    3. how the concept of the game theory can be applied to economics?
    4. what are the problems of providing public goods?
    5. what are the characteristics of quasi-public goods?
    6. the ways of government intervention?
    7. possible trade-offs of achieving macroeconomic objectives?
    8. Pros and cons of the UK joining the Eurozone
    9. types of economies of scale
    10. how different supply-side policies might help with reducing inflation?
    11. why deflation is a bad thing for the economy?
    12. why the PPF might shift to the left?

    ReplyDelete
  2. chris sivewright18 April 2009 at 20:19

    Lance - answer these!

    ReplyDelete
  3. Mr.Lex19 April 2009 at 08:27

    Hi mate...This is not my fault,I'm not cruel to u...This is my questions:
    1.Why AS may shift to the right?
    2.Why AD may shift to the left?
    3.If PED is -o.3 so what does it mean?
    4.If CPED is 4.3 so what does it mean?
    5.What are the disadvantages of High Economic growth?
    6.What are the Government's policies to reduce Unemployment?
    7.Draw a diagram of economics growth.

    Ok..good luck man!

    ReplyDelete
  4. Anonymous20 April 2009 at 08:57

    Hi, this is Sairan.
    Mr. Chris asked us to ask some questions from AS Economics to you:
    1. Describe what is meant by the ‘economic problem’.
    2. Explain what does 'highly price inelastic' mean.
    3. How does the advertising help to correct market failure?
    4. What is it Market failure?
    5. What does Market failure cause?
    6. Why and how does Government intervene to correct Market failure?
    7. Draw the diagram how does government subsidy effect on the price?

    ReplyDelete

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