What does savings rate mean in macroeconomics?
You know how in macroeconomics, you hear about the savings rate? Is the savings rate between people like you and me? Is it the amount of money we don’t spend on consumption and put in to our bank accounts? Or does the savings rate also include how much the government saves or businesses save?
It includes savings from all sources but in the case of the government it is debt reduction/increases that used to calculate the rate.
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