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LOAN LOSS RESERVES: A special account set aside by banks acting as a buffer between deposits and net worth that's used in case a loan is not repaid. Without this reserve, an unpaid loan on the asset side of a bank's balance sheet would require an adjustment of deposits or net worth on the liability side. The loan loss reserve is used for this adjustment.
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Lesson 10: Gross Domestic Product | Unit 3: Two Views of GDP
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Page: 15 of 25
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The four sectors of the economy buy ALL current economic production and when aggregated give us GDP. The four sectors and their expenditures: - Household: Consumption (C).
- Business: Investment (I).
- Government: Government Expenditures (G).
- Foreign: Net Exports (X-M), the difference between Exports (X) and Imports (I).
Expenditures on GDP: GDP = C + I + G + (X-M)- C, I and G buy not just domestic goods and services, but also imports.
- When we aggregate C, I, G and X we have domestic production plus imports. To measure only domestic production, we subtract imports (M).
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MARGINAL REVENUE PRODUCT AND FACTOR DEMAND A perfectly competitive firm's factor demand curve is that negatively-sloped portion of its marginal revenue product curve. A perfectly competitive firm maximizes profit by hiring the quantity of input that equates factor price and marginal revenue product. As such, the firm moves along its negatively-sloped marginal revenue product curve in response to changing factor prices.
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BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time watching the shopping channel hoping to buy either a wall poster commemorating the first day of winter or blue cotton balls. Be on the lookout for celebrities who speak directly to you through your television.
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This isn't me! What am I?
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The first "Black Friday" on record, a friday marked by a major financial catastrophe, occurred on September 24, 1869 -- A FRIDAY -- when an attempted cornering of the gold market induced a financial crises and economy-wide depression.
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"Success is more a function of consistent common sense than it is of genius. " -- An Wang, industrialist
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RTA
Regional Trading Arrangement
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