CH 7 Summary

CH 7 Summary - Summary

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Summary 1. Economists keep track of the flows of money between sectors with the national income and   product accounts , or  national accounts .Households earn income via the factor markets from  wages, interest on bonds , profit accruing to owners of  stocks , and rent on land. In addition,they  receive  government transfers  from the government.  Disposable income , total household income  minus taxes plus government transfers, is allocated to  consumer spending  ( C ) and  private   savings . Via the  financial markets , private savings and foreign lending are channeled  to  investment spending  ( I ), government borrowing, and foreign borrowing.  Government   purchases of goods and services  ( G ) are paid for by tax revenues and any government   borrowing Exports  ( X ) generate an inflow of funds into the country from the rest of the  world, but  imports  ( IM
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This note was uploaded on 09/20/2011 for the course ECO 2023 taught by Professor Sabet during the Fall '08 term at FIU.

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CH 7 Summary - Summary

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