ECO 201 (NOVA) -- Ch. 10 SG
EXAM QUESTIONS AND
ANSWERS 100% PASS
Savings-Investment Spending Identity - ✔✔savings and investment spending are
always equal for the economy as a whole
Total Income = Total Spending - ✔✔GDP = C + I + G
Total Income = Consumption Spending + Savings - ✔✔GDP = C + S +G
Budget Surplus - ✔✔difference between tax revenue and government spending when
tax revenue exceeds government spending
Budget Deficit - ✔✔difference between tax revenue and government spending when
government spending exceeds tax revenue
Budget Balance - ✔✔difference between tax revenue and government spending
Government Savings - ✔✔Tax Revenue - Government Spending - Value of Government
Transfer
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, National Savings - ✔✔sum of private savings and the budget balance, is the total
amount of savings generated within the economy
National Savings - ✔✔Government Savings + Private Savings
Closed economy - ✔✔economy in which the investment spending identity has the
following form: National Savings = Investment
Inflow of Funds - ✔✔foreign savings that finance investment spending in that country
Outflow of Funds - ✔✔domestic savings that finance investment spending in another
country
Net Capital Flow - ✔✔total inflow of funds into a country minus the total outflow of
funds out of a country
Net Capital Inflow - ✔✔Imports = Exports
Investment Spending - ✔✔National Spending + National Capital Inflow
Loanable Funds Market - ✔✔hypothetical market that illustrates the market outcome of
the demand for funds generated by borrowers and the supply of funds by lenders
What determines loanable funds markets? - ✔✔interest rates, 'r'
Present Value - ✔✔amount of money needed today in order to receive X at a future date
given the interest rate
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
EXAM QUESTIONS AND
ANSWERS 100% PASS
Savings-Investment Spending Identity - ✔✔savings and investment spending are
always equal for the economy as a whole
Total Income = Total Spending - ✔✔GDP = C + I + G
Total Income = Consumption Spending + Savings - ✔✔GDP = C + S +G
Budget Surplus - ✔✔difference between tax revenue and government spending when
tax revenue exceeds government spending
Budget Deficit - ✔✔difference between tax revenue and government spending when
government spending exceeds tax revenue
Budget Balance - ✔✔difference between tax revenue and government spending
Government Savings - ✔✔Tax Revenue - Government Spending - Value of Government
Transfer
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, National Savings - ✔✔sum of private savings and the budget balance, is the total
amount of savings generated within the economy
National Savings - ✔✔Government Savings + Private Savings
Closed economy - ✔✔economy in which the investment spending identity has the
following form: National Savings = Investment
Inflow of Funds - ✔✔foreign savings that finance investment spending in that country
Outflow of Funds - ✔✔domestic savings that finance investment spending in another
country
Net Capital Flow - ✔✔total inflow of funds into a country minus the total outflow of
funds out of a country
Net Capital Inflow - ✔✔Imports = Exports
Investment Spending - ✔✔National Spending + National Capital Inflow
Loanable Funds Market - ✔✔hypothetical market that illustrates the market outcome of
the demand for funds generated by borrowers and the supply of funds by lenders
What determines loanable funds markets? - ✔✔interest rates, 'r'
Present Value - ✔✔amount of money needed today in order to receive X at a future date
given the interest rate
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
