Term
|
Definition
| The amount of real domestic output that domestic consumers, business, government, will desire to purchase at each possible price level. |
|
|
Term
|
Definition
| Higher prices reduce real spending power, price and output are negatively related. |
|
|
Term
|
Definition
| When domestic prices are higher than their important alternatives. Export less import more. Therefore higher prices lead to less domestic output. |
|
|
Term
|
Definition
| Higher prices lead to inflation which lead to less borrowing and a lower real GDP |
|
|
Term
|
Definition
| The level of real domestic output available at each possible price level. |
|
|
Term
|
Definition
| Inflation caused by an increase in aggregate demand. |
|
|
Term
|
Definition
| Inflation caused by a decrease in aggregate supply. |
|
|
Term
|
Definition
| Government policy intended to influence the economy through aggregate supply by lowering input costs and reducing regulation. |
|
|
Term
|
Definition
| Advertised rate of interest for loans/deposits. |
|
|
Term
|
Definition
| The rate of interest after inflation expectations. |
|
|
Term
|
Definition
| The interest adjusted value of future payment streams. |
|
|
Term
|
Definition
| The interest rate where the present value of costs and benefits are equal. |
|
|
Term
|
Definition
| Interest adjusted value of past payments. |
|
|
Term
|
Definition
| Estimate to determine time to double investment. 72/4% = 18 years |
|
|
Term
|
Definition
| The risk to the investor that the borrower will not pay. |
|
|
Term
|
Definition
| The reward investors receive for taking greater risk. |
|
|
Term
|
Definition
| The relationship between reward and the time until the reward is received. |
|
|
