Macroeconomics Chapter 13: Saving Investment and the Financial System
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The group of institutions in the economy that help to match one person's saving with another person's investment.
Financial institutions through which savers can directly provide funds to borrowers.
A certificate of indebtedness.
A claim to partial ownership in a firm.
Financial institutions through which savers can indirectly provide funds to borrowers.
An institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds.
National saving (saving)
The total income in the economy that remains after paying for consumption and government purchases.
The income that households have left after paying for taxes and consumption.
The tax revenue that the government has left after paying for its spending.
An excess of tax revenue over government spending.
A shortfall of tax revenue from government spending.
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.
A decrease in investment that results from government borrowing.
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