why is saving a flow variable whereas saving s is a stock variable??
Dear Student,
Answer to your question is as follows :
Savings - Stock Concept
Reason: As it is measured at a particular time so it will be a stock concept. In other words, it is measured only at a single point of time. For example, we say, the saved amount in my account is Rs 50,000.
Saving - flow Concept
Reason: As it is measured for a particular interval of time so it will be a flow concept. For example, we say, my saving is 1,00,000 per month.
Regards
Answer to your question is as follows :
Savings - Stock Concept
Reason: As it is measured at a particular time so it will be a stock concept. In other words, it is measured only at a single point of time. For example, we say, the saved amount in my account is Rs 50,000.
Saving - flow Concept
Reason: As it is measured for a particular interval of time so it will be a flow concept. For example, we say, my saving is 1,00,000 per month.
Regards