Textbook Notes (368,317)
Canada (161,798)
Economics (818)
ECON 1100 (224)
Chapter 16

Chapter 16 Saving, Capital Formation, and Financial Markets

2 Pages
88 Views
Unlock Document

Department
Economics
Course
ECON 1100
Professor
Eveline Adomait
Semester
Winter

Description
Chapter 16: Saving, Capital Formation, and Financial Markets Tuesday, April 9, 20138:21 PM 16.1 Saving and Wealth Definitions Saving- current income minus spending on current needs; a flow Saving Rate- saving divided by income Wealth- the value of assets minus liabilities; also called net worth Liabilities- the debts one owes Capital Gains- increases in the value if existing assets Capital Losses- decreases in the value of existing assets 16.2 Why do People Save? Definitions 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 16.3 Economy Wide Saving and Wealth Definitions 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 International Capital Flows- purchases or sales of real and financial assets across international borders Capital Inflows- purchases of domestic assets by foreign households and firms Capital Outflows- purchases of foreign assets by domestic households and firms Net Capital Inflows- capital inflows minus cap
More Less

Related notes for ECON 1100

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit