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AFC: The abbreviation for average fixed cost, which is fixed cost per unit of output, found by dividing total fixed cost by the quantity of output. Average fixed cost is one of three related cost averages. The other two are average variable cost and avarage total cost. Average fixed cost decreases with larger quantities of output. Because fixed cost is FIXED and does not change with the quantity of output, a given cost is spread more thinly per unit as quantity increases. A thousand dollars of fixed cost averages out to $10 per unit if only 100 units are produced. But if 10,000 units are produced, then the average shrinks to a mere 10 cents per unit.
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Lesson 19: Money Creation | Unit 4: The Multiplier
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Page: 17 of 23
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The key to the deposit multiplier is required reserves. It is no coincidence that when the reserve ratio is 10%: - $10 of deposits require $1 of reserves and that $1 of reserves can back up $10 of deposits.
- It's all part of the same process.
The deposit multiplier is the inverse of the reserve ratio.The key to the deposit creation process: - Each bank keeps a fraction of the reserves received when checks are deposited and cleared.
- The bank sends along the rest to another bank by making a loan.
Therefore:- The less banks keep, the more they send to other banks and the more is used to perpetuate the process.
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PRIVATIZATION The process of converting or "selling off" government-owned assets, properties, or production activities to private ownership. Privatization is usually undertaken either to generate revenue for the government or as part of an overall laissez faire approach to the economy.
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PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time looking for a downtown retail store seeking to buy either a flower arrangement with a lot of roses for your grandmother or a wall poster commemorating the first day of winter. Be on the lookout for poorly written technical manuals.
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North Carolina supplied all the domestic gold coined for currency by the U.S. Mint in Philadelphia until 1828.
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"The road to success is always under construction. " -- Lily Tomlin, Actress
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AS-AD
Aggregate Supply-Aggregate Demand Model
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