
Concept explainers
Concept Introduction:
Financial System: It is a system where all the borrowers and lenders exchange their financial assets.
Investment Spending: All those spending’s which are done on physical capital which means that only expenses that increases an economy’s level of physical capital is known as investment spending.
Budget Balance: The budget is considered to be balanced when revenue collected from tax and expenditures made by the government are equal. When it is a deficit it is represented by a negative value, when it is a surplus it is represented by a positive value and in case of a balanced budget it is zero.
Net Capital Inflow: It is the total amount of incoming of all the financial assets into a country which is then deducted from the total outgoing of financial assets out of a country.

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Chapter 10 Solutions
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