1. 2-3 Other Measures of Business Activity

2. Goals Discuss investment activities that promote economic growth. Explain borrowing activities by government, business, and consumers. Describe future concerns of economic growth.

3. Investment Activities Capital Spending – refers to the money spent by a business for an item that will be used over a long period. Capital Projects – involved spending by businesses for items such as land, buildings, equipment, and new products The money for capital projects comes from 3 sources: Personal savings, stock investments and bonds

4. Personal Savings –A major source of investment funds –It’s the money you deposit in a bank –You receive interest Savings rate for the country is an important factor for economic growth –It is, unfortunately, decreasing! –Below 1%

5. Saving by Nation

6. The Stock Market –Invest by becoming a part owner of a corporation –Stock represents ownership or equity www.yahoo.com www.yahoo.com –Value of stock affected by: Supply and demand Earnings of the company

7. The Bond Market –A Bond represents debt for a company/government –If you purchase a bond you are a creditor (you have lent $ to the company or govt. –In return, you get interest

8. Borrowing Government Debt –The government uses borrowing to finance projects such as new schools or highways. –Budget surplus – when a government spends less than it makes. –Budget deficit - when a government spends more than it makes.

9. Borrowing (cont.) Business Debt –Loans, bonds, and mortgages are common borrowing methods businesses use. –Debt can positively help a business or negatively. Consumer Debt –The use of credit cards can cause debt and trouble for individuals. (www.chasecreditcards.com) www.chasecreditcards.com

10. Future Economic Challenges The ability for an economy to produce output determines its growth. The U.S government strives to develop solutions to problems and new technologies.

11. Key Terms Capital project StockBond Budget Surplus Budget Deficit National Debt

12. Now it’s time to………. Go to kahoot.it