Q. Which among the following is a correct definition of ” saving” ?
Answer: Total aggregate income less total aggregate consumption
Notes: The correct definition of "saving" is "Total aggregate income less total aggregate consumption." This definition aligns with the economic concept of saving, which refers to the portion of income that is not spent on consumption. According to the National Income and Product Accounts (NIPA) in the U.S., saving is a critical component of economic growth, as it provides funds for investment. In 2020, the U.S. personal saving rate surged to over 30% due to pandemic-related factors, which indicates the importance of saving in personal finance and economic stability.