The below mentioned article provides an overview on the saving function of income. Meaning of Saving Function: Consumption increases as income increases but less than the rise in income. We will now explain what happens to saving when income increases. Saving is defined as the part of income which is not consumed because disposable income is either consumed or saved. [...]
Here we detail about the two main approaches of saving and investment equality. 1. Saving and Investment (Accounting Equality)—Static Approach: Accounting equality between saving and investment is also called logical identity. Just as price is determined by demand and supply, so that, at each price, total amount sold is equal to total amount bought. This happens on account of the [...]
This article justifies that saving is a private virtue of an individual. It may be understood that Keynesian economics is macroeconomics, and savings, according to Keynes, imply collective or aggregate savings of the community. According to classicals, saving was a great private virtue as every individual must save something against the rainy day. Increased savings on the part of different [...]