principals-concepts-chap9

principals-concepts-chap9 - for saving to find the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 9 ECO 2013 Core Principles Cost-Benefit Principle - the chapter uses the cost-benefit principle to explain an individual's decision to save and a firm's decision to employ more capital or invest in new technology. Not-All-Costs-Count-Equally - the chapter applies opportunity cost to look at the cost of investing in new capital. Equilibrium Principle - the chapter applies supply and demand analysis to the market
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: for saving to find the equilibrium interest rate. Important Concepts Covered ! Saving and the saving rate ! Wealth ! Assets/liabilities ! Flow versus stock ! Capital gains and losses ! Life-cycle, precautionary, and bequest saving ! National, private, and public saving ! Transfer payments ! Government budget deficits and surpluses ! Crowding out...
View Full Document

Ask a homework question - tutors are online