§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer what is his estimate of the savings ratio in the case of the marginal increase in real incomes in the economy as a whole.
§ Mr. Hayhoe
The proportion of income saved from marginal increases in income will depend on many factors including inflation, financial wealth and real and nominal 451W interest rates. It may also be influenced in the short run by the source of the increase and its distribution between sectors in the economy.