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What Happens to National Saving When the Government Runs a Budget

question 26

Essay

What happens to national saving when the government runs a budget surplus? What happens to national saving when the government runs a budget deficit?


Definitions:

Base Year

A specific year chosen as a point of reference or comparison for financial or economic data.

Price Index

A statistical measure that shows changes in the price level of a basket of consumer goods and services over a period of time.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Price Index

A statistical measure that shows changes in the average price level of a selected basket of goods and services over time.

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