Uma
asked
0
1
Answer Now
Comment
Report
1
Answers
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below –
For any questions Request A Call Back
narahari
answered
1. Increase in Savings
Capital formation depends on saving. According to J.M. Keynes “Saving is the excess of income over consumption
expenditure”. To be more precise, saving is a part of income that is not spent on current consumption. If consumers
spend their entire incomes on consumers’ goods, there could be no accumulation of capital goods. If, on the
other hand, consumers decide to save part of their incomes, country’s resources can be devoted to making
capital goods.
