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Definition of 'Surplus Spending Unit'
An economic unit with income that is greater than or equal to expenditures on consumption or real investment over the course of a period. A surplus spending unit will use its additional income to buy goods, invest, lend money to deficit spending units or pay off its own deficit from an earlier period.
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Investopedia explains 'Surplus Spending Unit'
Basically, a surplus spending unit earns more than it spends. Surplus spenders can be individuals, sectors, countries or even the whole economy.
The household sector usually represents a surplus spending unit, as this sector earns large portions of disposable income. Most households earn more income than necessary to purchase food, shelter and other basic necessities. As a result, they are able to purchase additional consumer products, hold money in banks, or invest in the stock market.
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Search results for 'Surplus Spending Unit'
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http://www.investopedia.com/exam-guide/finra-series-6/economic-factors/fiscal-policy.asp
... Investment Companies: 11.1 Introduction; 11.2 Unit Investment Trust ... The government
decreases spending and may increase ... its deficit and create a surplus during a ...
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http://www.investopedia.com/exam-guide/finra-series-6/economic-factors/international-economic-indicators.asp
... Investment Companies: 11.1 Introduction; 11.2 Unit Investment Trust ... Credit items
include exports, foreign spending in the ... it exports, and a trade surplus if it ...
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