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Unformatted text preview: Saving and investment National income accounting identity: Y= C + Saving and investment Private saving: Sp= Y-T-C Public saving: Sg= T-C Budget surplus .. Market for loanable funds slope; shift factors demand negative slope firms must borrow to invest interest rate rises, borrow to invest interest rate rises, borrowing more expensive Supply Postive slope households: higher interest rate - ever dollars saved now = more future consuotion...
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This note was uploaded on 01/27/2011 for the course ECON 1B03 taught by Professor Hannahholmes during the Winter '08 term at McMaster University.
- Winter '08