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Unformatted text preview: National savings = Private + Public savings = (Y-T-C)+(T-G) = Y-C-G = I, where I = investments o Budget surplus: an excess of tax revenue over government spending (T>G) o Budget deficit: a shortfall of tax revenue from government spending (T<G) The Market for loanable funds: the market in which those who want to save supply funds and those who want to borrow to invest demand funds. o Crowding out: a decrease in investment that results from government borrowing...
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This note was uploaded on 12/06/2011 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue University-West Lafayette.
- Fall '08