Consumption-Savings decision dealt with an entire chapter this year in our Econ 311 class. I remember the graph being a line that arced out from the origin. On the graph you had a total amount of money split between savings and consumption. It would typically be assumed you have a maximum amount of 100% to spend. In 2007 consumers actually had a negative savings rate. To have a negative savings rate, a person would have to spend more money than they have. Perhaps that is the reason why our economy has not become a top producer. Instead of investing our money, we have spent more money than we have and will not have a positive savings rate until we are able to pay off all of our bills and reduce consumption. In a slide show we saw that investment was necessary for a country to grow. Our country does not grow as fast as we need it to because the average American has a negative savings rate.
http://www.cbsnews.com/stories/2006/02/07/business/main1293943.shtml
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