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REPURCHASE AGREEMENT: A common type of bank account in which funds are transferred from one account to another, then automatically transferred back after a short period, usually overnight. In effect, a bank customer buys a legal claim from a bank with the understanding that the bank will automatically "repurchase" this legal claim back after a specified time period. Repurchase agreements were original developed as a round about means of paying interest on business checking, which such interest paying was legally prohibited. Repurchase agreements are near monies added to M1 to obtain broader monetary aggregates, M2 and M3.

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Lesson 4: Production Possibilities | Unit 1: Getting Started Page: 3 of 24

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

The production possibilities analysis has two main limitations:
  • First, Preferences: This analysis says nothing about which goods people want and which provide the most satisfaction. It only indicates the available options.
  • Second, Economic Efficiency: This analysis does not ensure we have economic efficiency-the combination that would generate the most satisfaction from the resources.

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AVERAGE PROPENSITY TO CONSUME

The proportion of household income that is used for consumption expenditures. The average propensity to consume (abbreviated APC) is really nothing more than average consumption. Together with the average propensity to save, it indicates how a given level of income is divided between consumption and saving. A related consumption measure is the marginal propensity to consume.

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APLS

GREEN LOGIGUIN
[What's This?]

Today, you are likely to spend a great deal of time at a dollar discount store trying to buy either a combination CD player, clock radio, and telephone (with answering machine) or a revolving spice rack. Be on the lookout for rusty deck screws.
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This isn't me! What am I?

On a typical day, the United States Mint produces over $1 million worth of dimes.
"Give the American people a good cause, and there's nothing they can't lick. "

-- John Wayne, actor

VAT
Value Added Tax
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