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LOCAL BONDS: Also called municipal bonds, these are medium or long-term financial instruments issued by municipalities to borrow the funds used to build schools, highways, parks and other public projects. An attractive feature of these financial instruments is that are exempt from federal income tax. Commercial banks, corporations, and others with large sums of funds to lend usually purchase these bonds.

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Lesson 4: Production Possibilities | Unit 4: Analysis Page: 15 of 24

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

We can use production possibilities to illustrate unemployment, too.
  • Unemployment is the condition that exists when some available resources are NOT engaged in the production of goods and services.
  • Unemployment is interpreted as any bundle that places the economy INSIDE the production possibilities curve.
  • With unemployment we don't get as much production as with full employment.
  • Unemployment is as any bundle, such as L, inside the curve.
  • M is not attainable.
  • Unemployment applies to all types of resources.

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MANAGED FLEXIBLE EXCHANGE RATE

An exchange rate control policy in which an exchange rate that is generally allowed to adjust to equilibrium levels through to the interaction of supply and demand in the foreign exchange market, but with occasional intervention by government. Also termed managed float or dirty float, most nations of the world currently use a managed flexible exchange rate policy. With this alternative an exchange rate is free to rise and fall, but it is subject to government control if it moves too high or too low. With managed float, the government steps into the foreign exchange market and buys or sells whatever currency is necessary keep the exchange rate within desired limits. This is one of three basic exchange rate policies used by domestic governments. The other two policies are flexible exchange rate and fixed exchange rate.

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BLACK DISMALAPOD
[What's This?]

Today, you are likely to spend a great deal of time at a dollar discount store seeking to buy either a box of multi-colored, plastic paper clips or several orange mixing bowls. Be on the lookout for broken fingernail clippers.
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General Electric is the only stock from the original 1896 Dow Jones Industrial Average remaining in the current index.
"Plans are only good intentions unless they immediately degenerate into hard work."

-- Peter Drucker, management consultant

M3
M2 plus investment types of near monies, including large denomination certificates of deposits, institutional money market deposits, and longer term repurchase agreements and Eurodollars
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