What Are Public, Private and National Saving and What Is

question 2

Essay

What are public, private and national saving and what is the implication of real national saving?

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Definitions:

Budget Constraint

The cap on the selection of consumption options accessible to a consumer, influenced by their income level and the pricing of commodities.

Utility Maximizing

A principle in economics where individuals or entities aim to achieve the highest level of satisfaction with their choices, given their resources.

Indifference Curve

Represents a graph that shows a combination of two goods that give the consumer equal satisfaction and utility, thereby making the consumer indifferent.

Absolute Value

A mathematical function that describes the distance of a number on the real number line from zero, without considering direction.