Meanwhile, At the National Level
The real issue for economic policy is not what the Hobstweedles will do with added income, but rather what large segments of the population or the entire population will do with it. In other words, we need a consumption function for the whole United States. Table 7.3 shows the values we need in order to plot the function.
Table 7.3 Disposable Income, Consumption, and Personal Saving (in billions of current dollars)
Source: Bureau of Economic Analysis, National Income and Product Accounts Tables (Values may be off by one due to rounding error.)
Note that the savings rate rose from 2.9 percent of disposable ...