how does saving plays important role in operation of national plans?
Answers
There is interdependence between the household sector and other sectors of the economy, such as the corporate sector. For example, in the act of saving, households are not buying the goods and services that firms sell. However, by saving, households are placing money in financial institutions and this provides a potential source of funds for firms to expand and to invest themselves.
Governments also have an interest in household savings. One reason for this is that governments often spend more than the receipts they have from taxation.
Answer:
National savings are important for the economic development of countries because investments are generated through savings.
Explanation:
Saving is an important indicator of economic development where it is used to achieve economic growth in any developing country.