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Generally human tendency is always thinking about future as the future is uncertain. In economics when income increases consumption also increases but less than proportionately. This is because everyone wants to save some portion of their income for their future. The reason for India for not so affected when Global recession was so much impact on the western countries, is saving tendency of the Indians. However, if the saving is high in the economy due to uncertainity, the volume of circulation of the money in the economy will become less and it will lead to lesser borrowing and investing attitude of the people. However, for any healthy economy there must be dynamic borrowing and investing with considerable amount of saving.

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Q: How does saving affect borrowing and investing?
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