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ession period. In the short term, if saving falls below investment, it can lead to a growth of aggregate demand and an economic boom. In the long term, if saving falls below investment it eventually reduces investment and detracts from future growth is made possible by foregoing present consumption to increase investment.

literature review :

1. Income consumption and saving are all closely liked. More, precisely, personal saving is that part of disposable income that is not consumed, saving equals income minus consumption. Remember that macro economics use the term investment or real investment to mean additions to the stock of productive assets or capital goods like computers or trucks. when Amazan. com builds a new warehouse or when the Smiths build a new house. These activities represent investment . Many people speak of investing when buying a place of land an old security or any title to property. In economics these purchases are really financial transactions or financial investments, because what one person is buying someone else is selling. There is investment only when real capital is produced.

Paul A. Samuelson & William D. Nordhaus (2009)

2. National saving or just saving is the total income in the economy that remains after paying for consumption and government purchases that is ---S=Y-C-G

The terms saving and investment can sometimes be confusing. Most people use these terms casually and sometimes inter. changeably, By contrast the macro economics who put together the national income accounts use these terms carefully and distinctly. In the language of macro-economics investment refers to the purchase of new capital such an

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equipment or buildings. When more borrows from the bank to build himself a new house, he adds to the nation's investment. Similarly, when the curly corporation sells some stock and uses the proceeds to build a new factory, it also adds to the nation's investment.

N. Gregory Mankiw (2008)

3. The total investible resources available at any time in a country are made up of domestic savings and external resources which are obtained from abroad in the form of foreign capital. To take savings first. The aggregate savings of an economy consists of government savings, saving by the business sector and savings by the households. Government savings are the tax revenues minus public expenditure, the business savings are the gross income of trade and industry minus the dividends and the taxes paid and the savings of the households are the disposible income minus consumption expenditure. Investment in the theory of income and employment means an addition to the nation's physical stock of capital like he building of new factories new machines as well as any addition to the stock of finished goods or the goods in the pipelines of production investment includes additions to inventories as well as to fixed capital. Investment in this sense does not refer to the total stock of capital inexistence, but net addition to this capital over period of time say a year.

K.K.Dewett (2009)

4. When Bangladesh started its development journey in 1972, it also suffered from these constraints. But over the years things have changed fairly dramatically. Today, Bangladesh has a surplus of saving over investment (8 percent of GDP according to national accounts data) and by imp