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Savings Ratio

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masterpierround
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Post: #1
Savings Ratio

Full disclaimer: I am extremely new to economics in general, and although it seems interesting, there are many things that I don't fully understand.

In my country, Pierround (http://www.ars-regendi.com/state/192371/show.html), I have what appears to be a very high Savings Ratio. My assumption is that if they are saving too much, they are spending too little, and isn't that a bad thing? So my question is this: Is my savings ratio, which appears to be higher than normal, a significant problem or likely to become one, and if it is, how do I fix it?

Thanks for any help anyone can give me.

14.03.2016 00:55
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Helsworth
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Post: #2
RE: Savings Ratio

masterpierround Wrote:
Full disclaimer: I am extremely new to economics in general, and although it seems interesting, there are many things that I don't fully understand.

In my country, Pierround (http://www.ars-regendi.com/state/192371/show.html), I have what appears to be a very high Savings Ratio. My assumption is that if they are saving too much, they are spending too little, and isn't that a bad thing? So my question is this: Is my savings ratio, which appears to be higher than normal, a significant problem or likely to become one, and if it is, how do I fix it?

Thanks for any help anyone can give me.


Hi, masterpierround,

First, you have to always keep in mind that Ars-Regendi is first & foremost a game. Secondly, the saving ratio moves on its own - and it does so strangely. Your assumption, however, is correct. A lower saving ratio means that you've more people spending - which translates into higher consumption & higher GDP overall.
But you needn't worry about it, since you're already at full employment. You've got lots of room to either decrease taxes, increasing spending, or both - to improve your economy & your social indexes.


https://www.patreon.com/SerbanVCEnache

This post was last modified: 14.03.2016 09:55 by Helsworth.

14.03.2016 09:52
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