Savings and Investment
The term ‘saving’ is usually used to mean ‘refraining from spending’. If, instead of using some of our income to buy goods and services we put it aside — possibly by depositing it with a bank or building society, or even placing it in a vase on the mantlepiece — we are saving. The important aspect of this from a national point of view is that we are refraining from spending, and making the goods and services that we might have bought available to others. This is vital if the community is to carry out investment in capital assets.
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