ECO 1102 Lecture Notes - Lecture 10: Registered Education Savings Plan, Registered Retirement Savings Plan, Loanable Funds

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Golnaz Sedigh

Document Summary

Chapter 8 saving, investment, and financial system: part 3. A higher saving rate could lead to a higher rate of growth of gdp. People respond to incentives: consumption taxes like the gst, rrsps (registered retirement savings plan, tfsa (tax free saving account, resp (registered education savings plan) Rrsp: (registered retirement savings plan) a plan that you establish, to which you/your spouse/common-law partner contribute. Rrsp is usually exempt from tax as long as the funds remain in the plan. Tfsa: (tax free saving account) a general-purpose savings vehicle that allows. Resp: (registered education savings plan) a contract between an individual (the subscriber) and a person or organization (the promoter). Under the contract, the subscriber names one or more beneficiaries (the future student(s)) and agrees to make contributions for them; and, the promoter agrees to pay eaps (educational assistance payments) to the beneficiaries. Generally save a smaller fraction of their incomes than their counterparts in many other counties (japan, germany)