ABSTRACT
Among the many factors which determine the growth or stagnation—as the case may be—of a national economy, its rate of saving out of current income and the subsequent increase in income resulting from the investment of these savings play an important role. A relatively simple method of graphic presentation and analysis makes it possible to articulate, without explicit recourse to algebra or calculus, the various effects which different configurations of these two determinants can have on the state of the economy and its development over time. Like any other purely theoretical inquiry, this analysis only helps us to draw certain, possibly not immediately obvious, conclusions from alternative sets of hypothetical assumptions.
