Questions Related to Consumption and Saving

  • Lester D. Taylor


As we have seen, decisions to save out of current income are additions to the pool of fluid capital, while decisions to consume or invest in produced means of production are subtractions. The economic drivers in an economy have been seen as owners/operators of productive capacity deciding how much of that capacity to utilize, entrepreneurs deciding how much to invest in new capacity, and households deciding how much of their income to consume. In general, this book has not been about the motivations that cause these decisions to occur, but rather about the implications of the decisions for changes in the pool of fluid capital and attendant effects upon interest rates and the general price level.


Natural Rate Income Elasticity Private Saving Current Income Retirement Saving 
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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of ArizonaTucsonUSA

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