the group of institutions in the economy that help to match one person's saving with another person's investment
financial institutions through which savers can directly provide funds to borrowers
a certificate of indebtedness, a debt finance
length of time until the bond matures
probability that the borrower will fail to pay some of the interest or principal
the way tax laws treat the interest earned on the bond
a claim to partial ownership in a firm, an equity finance
financial institutions through which savers can indirectly provide funds to borrowers
an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds
the total income in the economy that remains after paying for consumption and government purchases
=GDP - consumption - government purchases
=investment (in a closed economy); also =(GDP - taxes - consumption) + (taxes - government expenditure)
the income that households have left after paying for taxes and consumption
the tax revenue that the government has left after paying for its spending
an excess of tax revenue over government spending
a shortfall of tax revenue from government spending
market for loanable funds
the market in which those who want to save supply funds and those who want to borrow to invest demand funds
a decrease in investment that results from government borrowing
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