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others as well. Mill Supported Say’s law which stated supply will create its own demands and money was only a medium. This mean that good and services will be paid by other people with good and services. Say’s law also states because production creates its on demand there will be no overproductions.John Stuart supported Says law, but he did question the idea gluts cannot occur. “There is no question that Mill actually did recognize that agents might, on occasion, prefer to retain money in hand rather than part with it in exchange for commodities. Thus in his essay Of the Influence of Consumption on Production ( 1844 , p. 276) Mill clearly accepted that income receipts may be reserved unspent, retained in hand until “a year hence, or whenever it shall be most convenient (Grieve).” Mill recognition of a glut lead to his argument, when there isinadequate demand for goods there is an excess demand for money. Saving rate is the money a person chooses to save out of their income to set aside for retirement. These funds are typically put away in some type of mutual funds or low risk account. A country saving rate is determine how the economy is set up. In the United states the economy is set up based on consumption. This in turn yield a low saving rate. If you wanted to have a shift
in the saving rate, there will need to be higher paying jobs and higher interest rate. This will