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Canada (510,935)
Economics (1,617)
ECON 1BB3 (535)
Lecture

econ chap 8.docx

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Department
Economics
Course
ECON 1BB3
Professor
Bridget O' Shaughnessy
Semester
Winter

Description
Econ chap 8 (saving, investment, and the financial system) Only short SUMMARY, need detail notes for exam!!! Objective:  lean about some of important financial institutions in Canadian economy  How financial system related to key macroeconomic variables  Develop model of supply and demand for loanable funds in financial markets  Use a model to look at government policies  How government budget deficits and surpluses affect Canadian economy Summary Canadian financial: made up of many types of financial institutions; institutions act to direct the resources of households who want to save some of their income into hands of households and firms who want to borrow  Bond market  Stock market  Banks  Mutual funds National income accounting identities: reveal some important relationships among macroeconomic variables  Aclosed conomy -> national saving must
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