savings schedule

Savings scheduleclick for a larger image
Fig. 174 Savings schedule.

savings schedule

a schedule that depicts the relationship between SAVINGS and the level of INCOME. In the simple CIRCULAR FLOW OF NATIONAL INCOME, all consumption and saving is accounted for by households. At low levels of DISPOSABLE INCOME, households consume more than their current income (see DISSAVINGS). At higher levels of disposable income, they consume only a part of their current income and save the rest, as in Fig. 174. Thus, the savings schedule is derived by subtracting the CONSUMPTION SCHEDULE from the 45-degree line, as shown in the lower part of the figure. The slope of the savings schedule is equal to the MARGINAL PROPENSITY TO SAVE. See also LIFE-CYCLE HYPOTHESIS, PERMANENT-INCOME HYPOTHESIS.
References in periodicals archive ?
Consult a tax professional to estimate all relevant taxes for your self-employment situation and establish a savings schedule to amass the necessary funds by tax time.
We kept a savings schedule and a map of the West taped to my bedroom door.
To help stick to your savings schedule, it's beneficial to set up direct deposit of what you can afford into a joint wedding account.
Fidelity QFP then analyzes the information and builds a complete financial plan, including cash flow and net worth analysis, detailed action steps and a personalized savings schedule.
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