Concept of Saving

From an individual’s point of view saving is that part of his income which is not spent on consumption. Similarly, from the community’s point of view aggregate saving is that part of national income which is not spent on consumption. In other words, saving is excess of income over consumption expenditure, i.e., S=Y-C, where, S=saving, […]

Say’s law and Fisher’s equation (Quantity Theory of Money)

Say’s law also depends upon the classical quantity theory of money which is propounded by Irving Fisher depending on transaction approach. It states that general price level is function of money supply. Fisher’s equation is MV = PT, where, M is the supply of money, V is velocity of money, P is general price level […]