ECON 1100 Chapter 16: Chapter 16 Saving, Capital Formation, and Financial Markets
7 Dec 2013
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Saving- current income minus spending on current needs; a flow. Wealth- the value of assets minus liabilities; also called net worth. Capital gains- increases in the value if existing assets. Capital losses- decreases in the value of existing assets. Life-cycle saving- saving to meet long term objectives such as retirement, university attendance, or the purchase of a home. Precautionary saving- saving for protection against unexpected setbacks, such as the loss of a job. Bequest saving- saving done for the purpose of leaving an inheritance. Gross saving- the sum of household, corporate, government, and non-resident saving. Gross investment- the sum of private sector and government investment. National saving- the sum of gross saving by the household sector, the corporate sector, and the government sector. Non-resident saving- the balance between saving provided to the canadian economy by non- residents and saving provided to foreign economies by residents of canada.
