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HARD CURRENCY: Historically money that is in the form of precious metals, especially gold. In modern times, any national currency that is expected to retain its value (and even appreciate in value), and is readily acceptable for most international transactions. The U.S. dollar, German marc, and Swiss franc tend to be near the top of the list of hard currencies (also termed hard money).

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Lesson 13: Aggregate Demand | Unit 2: Doing More Page: 6 of 22

Topic: Investment Expenditures <=PAGE BACK | PAGE NEXT=>

The business sector is the group responsible for investment expenditures.

Investment is the expenditures by the business sector on final goods and services, mainly capital goods like factories and equipment, undertaken in a given time period.

Three specific categories of investment:

  • Fixed structures Buildings, factories, housing.
  • Equipment Machinery and tools.
  • Inventories Raw materials and unsold goods.
Investment is the most volatile of our four expenditures.

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ALLOCATIVE EFFICIENCY

Obtaining the most consumer satisfaction from available resources. In other words, resources are allocated in such a way that consumer satisfaction is at its highest possible level. This is also termed either efficiency or economic efficiency.

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RED AGGRESSERINE
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Today, you are likely to spend a great deal of time at a going out of business sale hoping to buy either a travel case for you toothbrush or a looseleaf notebook binder. Be on the lookout for mail order catalogs with hidden messages.
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Paper money used by the Commonwealth of Massachusetts prior to the U.S. Revolutionary War, which was issued against the dictates of Britain, was designed by patriot and silversmith, Paul Revere.
"The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those that fail. "

-- Napoleon Hill, author

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