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Economics glossary · The macroeconomy

Saving

What saving means in economics, as one of the three leakages, with an example and a question to test yourself.

Definition
Saving
Saving is the part of income that households neither spend nor pay in tax, so it buys no output this round.
Example

Can you think of an example of saving?

Test yourself

Can you name the three leakages?

Learn it properly: the module

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