assets liabilities reserves loans deposits deposits

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Unformatted text preview: consump3on or paying taxes Public saving: Tax revenue less government spending NaConal Saving: the por3on of na3onal income that is not used for consump3on or government purchases !!!!! Na#onal Saving = Investment in a closed economy Budget surplus: an excess of tax revenue over govt spending Budget deficit: a shorRall of tax revenue from govt spending Chapter 15 – Unemployment Unemployment rate (“u- rate”): % of the labor force that is unemployed Labor force parCcipaCon rate:% of the adult popula3on that is in the labor force Chapter 16 - The Monetary System The reserve raCo, R = frac3on of deposits that banks hold as reserves = total reserves as a percentage of total deposits !!!! ASSETS = LIABILITIES => Reserves + Loans = Deposits Deposits are liabili3es to the bank bec...
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