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Economic Concepts: Saving vs. Investment

This document appears to contain notes from economics lessons. It discusses various concepts related to bonds, investment, saving, consumption, interest rates, taxes, budgets, and elasticity. Examples and practice problems are provided to illustrate the concepts.

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Braden Scott
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44 views2 pages

Economic Concepts: Saving vs. Investment

This document appears to contain notes from economics lessons. It discusses various concepts related to bonds, investment, saving, consumption, interest rates, taxes, budgets, and elasticity. Examples and practice problems are provided to illustrate the concepts.

Uploaded by

Braden Scott
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

O

7 1000 6 2007 150 I LSO Ns


1000 200 150 250 250 Prs Pus
250 Prs 50ps 150 200 50
Prs 300

It was unstable
O
0
1) a) Eastern European. They have less people buying bonds.
b) 2040. A longer time is not bought as often at a short time.
c) Software Company. Less supply. More riskambiguity
d) New York. Less supply.

2) Workers have a stake in whether or not their company succeeds when they have stock in it. If they believe the company might not do well,
they should not own stock.

3) Saving is storing money. Investment is buying capital.


a. Investment. Buying capital.
b. Saving. Storing money in stock
Physical
c. Saving. Storing money in a bank.
d. Investment. Buying a car is buying capital.

4) Consumption: $6 trillion
Gov Purchases: $1.3 trillion
National Saving: $.7 trillion
Investment: $.7 trillion
Pu T G
it
8 1.5 s

5) Private Saving: $2500 Prs Y T C


Public Saving: $-200 Pus T G
National Saving: $2300
NS Prs Pus 1
Real Interest: 10%
2300 3300 100r 8 18
6) a. They’d have to give the bank back more money than they given there were high interest rates
b. No, because they would not get money from the bank
Theycanbuybondsiftheinterest rate is
7) a. $1050, $1080, $1200 higherthanexpectedreturn
b. Which interest rate higher and is more pro table
c. $1000, $2000. $2000, $1000
d. 8%
e. $1080, $1080, $1320. No one is worse off.

8) s's Gov takesmoney

Rise
If D
Q
crowding

b. Decreases, Increases, Decrease.


c. They can change more easily if more elastic
d. It can change more easily if more elastic
e. Private savings and supply increases. Decrease the effects.

9. a. Taxes are used to eliminate budget de cit. Budget de cit are used to determine taxes.
b. The amount of private saving going on

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