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Explain the link between saving, investment and economic growth, and consider the factors that influence the amount of saving individuals undertake.
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Question: Explain the link between saving, investment and economic growth, and consider the factors that influence the amount of saving individuals undertake. Saving, investment and economic growth. Each of these terms are mentioned in daily news and each of these terms is commonly accepted and well-known; separately. What most people are not aware of; however, are mutual connections between these economic indicators and this is what this paper tries to survey. The first section looks at the theoretical and empirical linkages between saving and investment followed by a section where the economic growth is taken into account. The last section covers and explains major determinants of the amount of saving individuals undertake. In order to achieve a consistent conclusion one has to take it step by step. So, let's start with the first term - saving1. In economics "saving is treated as the foregoing of consumption to accumulate assets" and...
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