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# In national income accounting, aggregate saving in any year is defined as?

### Question

In national income accounting, aggregate saving in any year is defined as?

### Options

A)
all disposable income not spent on consumption
B)
all savings deposits in all banks during the year
C)
all savings and time deposits in all banks during the year
D)
the value of inventory change for the year

### Explanation:

This question is asking about the definition of "aggregate saving" in national income accounting. Aggregate saving refers to the total amount of money saved by individuals, households, and businesses in a given year. It is important to measure aggregate saving because it helps to track the flow of money in the economy.

The correct answer to this question is Option A: all disposable income not spent on consumption. This means that aggregate saving is calculated by subtracting all the money that people spend on consumption (such as buying goods and services) from their total disposable income (which is the income they have left after paying taxes).

Option B, all savings deposits in all banks during the year, and Option C, all savings and time deposits in all banks during the year, are incorrect because they only refer to the amount of money that people deposit in banks. This does not necessarily represent the total amount of money that people save, as some people may save money in other ways or not put their savings in banks at all.

Option D, the value of inventory change for the year, is also incorrect because it refers to changes in the value of goods held in inventory by businesses. This is not related to the amount of money that individuals and households save.

In summary, aggregate saving is the total amount of money saved by individuals, households, and businesses in a given year. It is calculated by subtracting all the money spent on consumption from total disposable income. This helps to track the flow of money in the economy.