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Unformatted text preview: (trade via imports and exports) Disposable income = Income – Taxes + transfers Private Savings = Income – Taxes + transfers – Consumption Public Savings = Taxes – Government spending – transfers Budget debt = Deficit + Budget debt in previous year x (1 + interest rate) Budget deficit = - public saving Budget deficit = Government spending – Taxes Private saving = Income – Taxes – consumption Taxes = Government spending + public saving National saving = Income – Consumption – Government spending...
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This note was uploaded on 10/23/2011 for the course ECON 002 taught by Professor Eudey during the Fall '08 term at UPenn.
- Fall '08