which of the following is a savings surplus unit course hero

What is gross savings?

What is voluntary savings?

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What is gross savings?

Gross savings are the profits remaining after tax, and in the case of corporations, after the payment of cash dividends to the stockholders. The primary factors that influence the amount of savings in any given period include all of the following EXCEPT: a. levels of income. b. economic expectations.

What is voluntary savings?

c. Voluntary savings are financial assets set aside for use in the future.

What Is a Surplus Spending Unit?

A surplus spending unit is an economic unit with income that is greater than or equal to expenditures on consumption throughout a period. A surplus spending unit earns more than it spends on its basic needs and therefore has money left over to invest into the economy through the form of purchasing goods, investing, or lending. A surplus spending unit can be a household, business, or any other entity that makes more than it spends for the purpose of sustaining itself.

How does surplus spending unit benefit the global economy?

When a surplus spending unit is an entire country, it can benefit the global economy by investing in and lending to deficit spending countries. In the U.S., households usually represent a surplus spending unit, as many households earn large portions of disposable income.

How does a deficit unit become a surplus unit?

A deficit spending unit can become a surplus spending unit if it begins to generate additional income, covers its basic expenses, and pays off all of its own deficits from an earlier period.

What is gross savings?

Gross savings are the profits remaining after tax, and in the case of corporations, after the payment of cash dividends to the stockholders. The primary factors that influence the amount of savings in any given period include all of the following EXCEPT: a. levels of income. b. economic expectations.

What is voluntary savings?

c. Voluntary savings are financial assets set aside for use in the future.