Transcription of Private Saving: Public Saving: National Saving (Saving)
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Private Saving: Public Saving: National Saving (Saving)
MacroeconomicsTopic 4: Explain that interest rates are determinedin a market for loanable funds. Reference: Gregory Mankiw s Principles of Macroeconomics, 2nd edition, Chapter Rates and the Loanable Funds FrameworkSome Economic Terms and Definitions: Private Saving : The income that a Private citizen has left over after paying taxes andbuying consumption goods. Public Saving : Government tax revenue left after spending. If the government spendsmore than it collects in taxes, the government runs a budget deficit. If the governmentcollects more revue than it spends, the government runs a budget surplus.
• Private Saving: The income that a private citizen has left over after paying taxes and buying consumption goods. • Public Saving: Government tax revenue left after spending. If the government spends more than it collects in taxes, the government runs …
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