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17 Cards in this Set
- Front
- Back
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financial intermediaries
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financial institutions through witch savers can indirectly provide funds to borrowers
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mutual fund
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institution that sells it's shares to the public and users the proceeds to buy a portfolio of stocks and bonds
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private savings
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the income households have left over after paying for taxes and consumption
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public savings
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tax revenue government had left after praying for its spending
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budget surplus
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an excess of tax revenue over government spending
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budget deficit
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a short fall of tax revenue from government spending
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financial markets
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financial institutions where savers can directly provide funds to borrowers
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stock
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a claim to patrial ownership of a firm
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financial system
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group of institutions in the economy that help to match one person's savings with another person's investment
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bond
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a certificate if indebtedness
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market for loanable funds
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market that allows those who want to save supply funds and those who want to b borrow to invest demand funds
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crowding out
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a decrease in investment that results from government borrowing
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national savings
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the total income in the economy that remains after paying for consumption and government purchases
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substitutes
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two goods, where an increase in the price of one good leads to an increase in demand for the other good
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complements
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two goods, where the increase in the price of one leads to a decrease in the demand for the other good
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normal good
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goods, when income increases it leads to an increase in demand
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interior good
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goods, where an increase in income leads to a decrease in demand
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