consumption share  the proportion of GDP that is used for consumption; equals consumption divided by GDP, or C/Y.
crowding out  the decline in private investment owing to an increase in government purchases.
equilibrium interest rate  the interest rate that equates the sum of the consumption, investment, and net export shares to the share of GDP available for nongovernment use.
exchange rate  the price of one currency in terms of another in the foreign exchange market.
government purchases share  the proportion of GDP that is used for government purchases; equals government purchases divided by GDP, or G/Y.
investment share  the proportion of GDP that is used for investment; equals investment divided by GDP, or I/Y. Sometimes called investment rate.
national saving rate  the proportion of GDP that is saved, neither consumed nor spent on government purchases; equals national saving divided by GDP, or S/Y.
net exports share  the proportion of GDP that is equal to net exports; equals net exports divided by GDP, or X/Y.