MGEA05H3 Lecture 4: Lecture 04
4 Feb 2019
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Lecture 04 savings, investment spending and the financial system. In canada, patents are granted and administered by the canadian. Matching up savings and investment spending: both (physical) capital and human capital play important roles in determining long-run economic growth. In canada, human capital is largely provided by governments through public education: physical capital, with the exception of infrastructure, is mostly created by private investment spending (i. e. , spending by firms and households). Net foreign investment (nfi) = purchases of foreign assets from foreigners sales of domestic assets to foreigners. Net foreign investment must equal to net exports. The international flows of funds (nfi: the international flows of goods & services. With international flow of capital being possible, an open economy can allocate its savings in two ways: accumulate physical capital undertake domestic investment (i), acquire foreign assets undertake foreign investment (nfi).
