ECO 1102 Lecture 21: ECON 1102 - Lecture 21 - The Basics of Finance

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Gordon Lenjosek

Document Summary

Remember from last class there are a few different types of savings* In terms of answering these types of questions on the midterm or exam. Figure out what you are looking for first/what information you have. Remember increasing capital will increase output = standards of living go up if you have more income. Out of the two scenarios, it is best to spend than to save but a balance of both would be ideal. Primary outcome: if there is a fall in investment, standard of living will also decrease. This is based on what we have learned in the chapter of economic growth. Nothing will rise in the long run as it should. While it seems appealing, there is a trade-off. It causes changes through the rise of interest rates. Saving is the supply matter for both the public and private sectors. Investment is funds for the private sector. (e. g. firms, households).