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TRANSFERRABLE OUTPUT: An output that has a relatively large geographic market area due to the low cost of transportation. The low transportation cost means it is easier (that is, less expensive) to bring the output to the consumers rather than locating consumers near the output. Like many things, transferrable outputs are a matter of degree. At the other end of the spectrum lies local outputs. Most manufactured goods tend to have a high degree of transferability. Information, especially through television broadcasting and Internet web sites, is also relatively easily transported.

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Lesson 19: Money Creation | Unit 3: Modern Banking Page: 11 of 23

Topic: Injection <=PAGE BACK | PAGE NEXT=>

Suppose you find a $100 bill that you deposit in Amos National Bank.
  • Amos National adds $100 of vault cash, or reserves, to its assets, and $100 to its liabilities, your account.
  • Some of these reserves are required ($10) and some are excess ($90), which can be used for a loan.
  • Amos National Bank adds $90 to the customer's checking account, so the customer can buy new tires.
Two changes:
  • Amos National has a $90 loan balanced by a $90 checkable deposit.
  • Amos National Bank just created $90 of money.

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FEDERAL DEFICIT, AGGREGATE DEMAND DETERMINANT

One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and that shifts the aggregate demand curve when it changes. An increase in the federal deficit causes an increase (rightward shift) of the aggregate curve. A decrease in the federal deficit causes a decrease (leftward shift) of the aggregate curve. Other notable aggregate demand determinants are interest rates, inflationary expectations, and the money supply.

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Today, you are likely to spend a great deal of time strolling through a department store hoping to buy either several magazines on fashion design or a package of 3 by 5 index cards, the ones without lines. Be on the lookout for neighborhood pets, especially belligerent parrots.
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The wealthy industrialist, Andrew Carnegie, was once removed from a London tram because he lacked the money needed for the fare.
"No amount of business school training or work experience can teach what is ultimately a matter of personal character. "

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