When considering what can cause a fall in saving, several factors come into play:
1. A fall in the rate of interest: When the interest rates decrease, individuals may find it less attractive to save money in interest-bearing accounts. This can lead to a decrease in saving as people might opt for alternative investments or spending instead of saving.
2. A rise in disposable income: An increase in disposable income means individuals have more money available to spend on consumption goods and services. With higher disposable income, people may choose to spend more and save less, resulting in a fall in saving.
3. A fall in the rate of tax imposed on earnings from saving: If the tax rate on earnings from saving decreases, individuals may feel less incentivized to save as they get to keep more of their earnings. This could lead to a reduction in saving as people might choose to spend more or invest in other ways.
In summary, a fall in saving can be influenced by factors such as changes in interest rates, disposable income levels, and tax policies related to savings. Each of these factors can impact individuals' decisions on saving versus spending or investing their money.
