Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
how do you calculate savings?
|
income - spending on needs
|
|
how do you calculate savings rate?
|
savings/income
|
|
how do you calculate wealth
|
assets - liabilities
|
|
what is the difference between a stock and a flow?
|
a flow is defined per unit of time and a stock is a measurement taken at a point in time
|
|
how are stocks and flows related?
|
a flow is a rate of change in stocks
|
|
what is a capital gain?
|
it is an increase in the value of an existing asset
|
|
what is a capital loss?
|
a decrease in the value of an existing asset
|
|
what kind of saving is for:
"retirement or the purchase of a home?" |
life-cycle saving
|
|
what kind of saving is for:
"to protect against unexpected setbacks?" |
precautionary saving
|
|
what kind of saving is for:
"the purpose of leaving an inheritance?" |
bequest saving
|
|
what is a capital gain?
|
it is an increase in the value of an existing asset
|
|
what is a capital loss?
|
a decrease in the value of an existing asset
|
|
what kind of saving is for:
"retirement or the purchase of a home?" |
life-cycle saving
|
|
what kind of saving is for:
"to protect against unexpected setbacks?" |
precautionary saving
|
|
what kind of saving is for:
"the purpose of leaving an inheritance?" |
bequest saving
|
|
how is the real interest rate related to savings?
|
real interest rate is like a reward for saving due to the amount of income they accumlate from interest
|
|
how is national saving measured?
|
GDP - consumption expenditure - governmen tpurchases
|
|
in national saving, what is GDP?
|
income
|
|
in national saving, what is "spending on current needs?"
|
consumption expenditure and government purchases
|
|
what determines the # of loanable funds?
|
national savings
|
|
what causes investment aka demand for savings to shift?
|
- introduction of new technology causes investment to shift out because marginal product increases and it makes investing more attractive
|
|
what causes the supply of savings to shift?
|
- if national savings decrease
ex: private sector saves less or if the government decides to spend more (public savings = T-G), if G goes up and T stays the same, then public savings decrease which decreases national savings |