EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
AP Macroeconomics-Module 22 Study
Guide with Complete Solutions
interest rate - Answer✔✔-The price, calculated as a percentage of the amount borrowed, charged by
lenders to borrowers for the use of their savings for one year
savings-investment spending identity - Answer✔✔-An accounting fact that states that savings and
investment spending are always equal for the economy as a whole
budget surplus - Answer✔✔-The difference between tax revenue and government spending when tax
revenue exceeds government spending
budget deficit - Answer✔✔-The difference between tax revenue and government spending when
government spending exceeds tax revenue
budget balance - Answer✔✔-The difference between tax revenue and government spending. A positive
budget balance is referred to as a budget surplus; a negative budget balance is referred to as a budget
deficit.
national savings - Answer✔✔-The sum of private savings and the government's budget balance; the total
amount of savings generated within the economy
capital inflow - Answer✔✔-The net inflow of funds into a country; the difference between the total
inflow of foreign funds to the home country and the total outflow of domestic funds to other countries.
A positive net capital inflow represents funds borrowed from foreigners to finance domestic investment;
a negative net capital inflow represents funds lets to foreigners to finance foreign investment.
Page 1/3
AP Macroeconomics-Module 22 Study
Guide with Complete Solutions
interest rate - Answer✔✔-The price, calculated as a percentage of the amount borrowed, charged by
lenders to borrowers for the use of their savings for one year
savings-investment spending identity - Answer✔✔-An accounting fact that states that savings and
investment spending are always equal for the economy as a whole
budget surplus - Answer✔✔-The difference between tax revenue and government spending when tax
revenue exceeds government spending
budget deficit - Answer✔✔-The difference between tax revenue and government spending when
government spending exceeds tax revenue
budget balance - Answer✔✔-The difference between tax revenue and government spending. A positive
budget balance is referred to as a budget surplus; a negative budget balance is referred to as a budget
deficit.
national savings - Answer✔✔-The sum of private savings and the government's budget balance; the total
amount of savings generated within the economy
capital inflow - Answer✔✔-The net inflow of funds into a country; the difference between the total
inflow of foreign funds to the home country and the total outflow of domestic funds to other countries.
A positive net capital inflow represents funds borrowed from foreigners to finance domestic investment;
a negative net capital inflow represents funds lets to foreigners to finance foreign investment.
Page 1/3
