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European Debt Crisis PPT @ BECDOMS

European Debt Crisis PPT @ BECDOMS

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European Debt Crisis PPT @ BECDOMS
European Debt Crisis PPT @ BECDOMS

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Published by: Babasab Patil (Karrisatte) on Feb 22, 2012
Copyright:Attribution Non-commercial


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European Debt Crisis
How does European Debt Crisis influence theinterest rate in Euro Zone?How does European Debt Crisis influencethe value of Euro dollar?
ecall GDP formula
ecall that GDP is both total income in aneconomy and total expenditure on theeconomy¶s output of goods and services:Y = C + I + G + NX
Important identities
Assume a closed economy ±one that does not engage ininternational trade:Y = C + I + G
 Now, subtract C and G from both sides of the equation:Y ±C ±G =I
The left side of the equation is the total income in theeconomy after paying for consumption and government purchases and is called
national saving,
or just
 saving (S).

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