Term
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Definition
| Process of constructing real property, manufacturing producers' durable equipment, and increasing business inventories. |
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Term
| Personal Consumption Expenditures (PCE) |
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Definition
| expenditures by individuals for durable goods, nondurable goods, and services. |
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Term
| Gross Domestic Product (GDP) |
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Definition
| a nation's output of goods and services achieved over a specified period such as one year. |
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Term
| GDP consists of 4 components: |
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Definition
1. Personal Consumption Expenditures
2. Government expenditures including gross investment
3. Gross private domestic investment
4. Net exports of goods and services. |
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Term
| Gross Private Domestic Investment (GPDI) |
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Definition
| investment in residential and nonresidential structures, producers' durable equipment, and business inventories. |
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Term
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Definition
| Exports of goods and services minus imports. |
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Term
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Definition
| GDP= PCE + GE + GPDI + NE |
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Term
| If exports of goods and services exceed imports... |
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Definition
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Term
| Consumption is reflected by the sum of: |
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Definition
| personal consumption expenditures and government purchases of goods and services. |
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Term
| What are Reserves in the form of? |
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Definition
1. gold
2. foreign exchanges (currencies)
3. special drawing rights (SDRs)
4. reserves credit in the International Monetary Fun (IMF) |
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Term
| Gross Saving is composed of... |
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Definition
| net saving and consumption of fixed capital both private and government. |
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Term
| Capital Consumption Adjustment |
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Definition
| (a.k.a. depreciation) is the estimate of the "using up" of plant and equipment assets for business purposes. |
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Term
| What are Personal Consumption Expenditures (PCE)? |
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Definition
| expenditures by individuals for durable goods, nondurable goods, and services. |
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Term
| What is meant by gross private domestic investment (GDPI)? |
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Definition
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Term
| When the U.S. dollar declines in value relative to the Japanese yen, what is the likely impact of exports and imports between the two countries? |
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Definition
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Term
| What are capital consumption allowances? |
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Definition
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Term
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Definition
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Term
| Who determines the nation's fiscal policy? |
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Definition
| Congress and the president. |
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Term
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Definition
| A formal legislative process in which charges of " high crimes and misdemeanors" are brought against high-level officials. |
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Term
| How many of our presidents have been impeached? |
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Definition
| 2 out of 43. and Richard Nixon who resigned before being impeached. |
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Term
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Definition
| Occurs when expenditures are greater than revenues. |
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Term
| Federal Statutory Debt Limits |
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Definition
| Limits on the federal debt set by Congress. |
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Term
| What are the major revenues and expenditures in the federal budget? (pg.165) |
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Definition
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Term
| What is meant by budgetary deficit? (pg. 165) |
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Definition
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Term
| How were the savings of individuals important in the early development in the US? (pg. 166) |
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Definition
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Term
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Definition
| Income that is not consumed but held in the form of cash or other financial assets. |
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Term
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Definition
| Occurs when income exceeds investment in real assets. |
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Term
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Definition
| proportion of after-tax profits retained by corporations. |
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Term
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Definition
| Occurs when investment in real assets exceeds current income. |
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Term
| What's the difference between Savings Surplus and Savings Deficit? (pg. 167) |
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Definition
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Term
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Definition
| Savings of individuals equal to personal income less personal current income taxes less personal outlays. |
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Term
| Personal Savings Equation |
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Definition
| Personal Savings = Personal income - Personal current taxes - personal outlays. |
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Term
| Personal Income Includes: |
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Definition
1. Compensation of employees
2. Personal income of persons with capital consumption adjustment.
3. Personal interest and dividend income
4. Net government social benefits to persons. |
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Term
| Personal outlays include: |
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Definition
1. Personal consumption expenditures
2. personal non mortgage interest payments
3. personal current transfer payments made primarily to the government. |
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Term
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Definition
| savings held or set aside by choice for future use. |
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Term
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Definition
| savings accumulated on a regular schedule by prior agreement. |
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Term
| What are the differences between voluntary savings and contractual savings? (pg. 167) |
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Definition
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Term
| 3 factors that usually influence a person's choice of medium: |
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Definition
1. liquidity
2. degree of safety
3. return |
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Term
| How do Corporations Save? (pg. 169) |
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Definition
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Term
| What are capital consumption adjustments? (pg. 169) |
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Definition
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Term
| Factors influencing the total amount of savings: |
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Definition
1. Levels of income
2. Economic Expectations
3. Cyclical Influences
4. Life Stage of the individual saver or corporation. |
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Term
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Definition
| to liquidate savings for consumption purposes. |
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Term
| Who fathers the generation waves idea? |
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Definition
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Term
| Successful individual life cycle goes through the following stages: |
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Definition
1. Formative / education developing
2. Career starting / family creating
3. Wealth building
4. Retirement Enjoying. |
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Term
| How does the pattern of savings usually differ over an individual's lifetime? |
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Definition
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Term
| Life cycle stages of a successful business firm: |
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Definition
1. Start up Stage
2. Survival Stage
3. Rapid Growth Stage
4. Maturity Stage |
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Term
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Definition
| markets where debt securities of one year or less are issued or traded |
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Term
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Definition
| debt instruments or securities with maturities of one year or less. |
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Term
| Major Securities that trade in the money markets are: |
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Definition
| Treasury bills, negotiable certificates of deposit, commercial paper, banker's acceptances, repurchase agreements, and federal funds. |
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Term
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Definition
| markets where debt securities with maturities longer than one year and corporate stocks are issued or traded. |
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Term
| Capital Market Securities |
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Definition
| debt securities with maturities longer than one year and corporate stocks. |
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Term
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Definition
| a loan backed by real property in the form of buildings and houses. |
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Term
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Definition
| long-term debt instruments issued by government units and business corporations. |
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Term
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Definition
| long-term debt instrument used by the U.S. Federal Government. |
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Term
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Definition
| long-tem debt instrument issued by a state or local government. |
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Term
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Definition
| debt instrument issued by a corporation to raise long term funds. |
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Term
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Definition
| ownership interests in a corporation. |
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Term
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Definition
| a financial contract that derives its value from a bond, stock, or other asset. |
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Term
| What financial instruments typically have maturities up to one year? (pg. 173) |
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Definition
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Term
| What financial instruments and securities typically have maturities in excess of one year? |
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Definition
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