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Unformatted text preview: construction was such that the government undertook much of the financing of these projects. Since the government financing was accomplished largely through bond issues rather than current revenues, the ultimate source of funds was the savings of individuals who bought the bonds. Foreign sources of savings Domestic supply of savings Creation of savings 9. Define personal saving. Also, differentiate between voluntary and contractual savings. Personal savings are savings of individuals equal to personal income less personal current taxes less personal outlays. Voluntary savings are savings in the form of financial assets held or set aside for use in the future. Contractual savings are savings accumulated on a regular schedule for a specified length of time by prior agreement. Contractual savings are not determined by current decisions. They are disciplined by previous commitments that the saver has some incentive to honor....
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- Spring '11