Define savings rate. If the aggregate savings in an economy is $10,000 and the aggregate income in the economy is $70,000, what is the savings rate in the economy?

What will be an ideal response?

The savings rate refers to the fraction of income that households save. It can be obtained by dividing aggregate savings by aggregate income.
In this case, the savings rate = 10,000/70,000 = 0.1428 = 14.28%.