UNIT IV: SAVINGS BEHAVIOR AND MOBILIZATION

Question 1

portion of disposable income not spent for consumption but rather are set aside for future use.

Answer 1

SAVINGS

Question 2

the decision to save is a two-stage sequential process, which includes…

Answer 2

first: a decision on consumption levels after which a residual is left called ‘saving’

second: a decision on the allocation of surplus funds among alternative forms of saving