ECO102H1 Chapter Notes - Chapter 10: Loanable Funds, Government Budget Balance, Balanced Budget
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ECO102H1 Full Course Notes
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Gdp = (c + g) + (cid:1845)(cid:3028)(cid:3047)(cid:3042)(cid:3041)(cid:3028) (cid:1845)(cid:3049)(cid:3028)(cid:3047) = (cid:4666)(cid:3005) + (cid:4667) (cid:3004) Private savings: disposable income minus consumption spending: Chapter 10: savings, investment spending, and the financial system. Savings-investment spending identity says that savings and investment spending are always equal for the economy as a whole. The savings-investment identity in a closed economy. In a closed economy, there are no exports or imports, so. Gdp = c + i + c. National savings: total amount of domestic savings generated within an economy. Total income = consumption spending by households and. Public savings (or government budget balance): difference between net tax revenue ( t - tr) and government spending on goods and services. The savings-investment spending identity in an open economy. Inflows of funds: foreign savings that finance investment spending in that country. Outflows of funds: domestic savings that finance investment spending in another country. Nfi = x - im = net exports.
