Topics
Precautionary Saving
Saving tends to be sensitive to people’s perceived job security, which is often related to the outlook for unemployment. When the rate of unemployment is increasing, many households - if they can - will look to cut consumption and increase the level of precautionary savings. Ceteris paribus, this will lead to a reduction in aggregate demand in the short term as savings represent a withdrawal from the circular flow of income and spending. These savings provide a buffer against future uncertainty but the evidence is that lower and middle-income families find it harder to save more during an economic downturn and at times of great uncertainty.
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Recession Watch - UK Households Saving More and Borrowing Less
31st October 2022
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UK Economy - Will Household Saving Collapse?
1st October 2022
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Are people saving more because they expect higher taxes?
10th November 2021
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UK sees first mid-recession wealth boom since the mid-1940s
12th July 2021
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Economic uncertainty - we are not returning to normal
10th July 2021
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Household Saving and Aggregate Demand
Topic Videos
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Consumers spent less and saved more in 2020
4th January 2021
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Aggregate Demand - Revision Playlist
Topic Videos
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Household Saving
Study Notes
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Consumer spending and saving (Quizlet Activity)
Quizzes & Activities
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UK Economy Update 2019: Consumer Spending and Saving
Topic Videos
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Real Value of Savings (MCQ Revision Questions)
Practice Exam Questions