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AMORTIZATION: The process of paying off a debt liability and accrued interest through a series of equal, periodic payments. Car loans and mortgages are two debts commonly paid off through amortization. Your monthly car payment, for example, partially pays for interest accrued on the outstanding balance and partly reduces that balance. Because one payment reduces the outstanding balance, each subsequent payment has a smaller portion for interest. If the proper amortization schedule has been calculated, your loan will be paid off with the last payment.

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Lesson 5: Demand | Unit 4: Determinants Page: 17 of 20

Topic: Ch...Ch...Changes <=PAGE BACK | PAGE NEXT=>

The difference between:
  • Demand, the whole range of prices and quantities
  • Quantity demanded, a specific quantity demanded at a specific price.
The difference between:
  • Change in demand, we are changing, moving, shifting, the entire demand curve, the whole set of prices and quantities is changing. The five determinants change the demand.
  • Change in quantity demanded, we have moved to a new quantity on an same demand curve. Only the price of the good changes the quantity demanded.
  • This difference lets us analyze cause and effect.
  • Don't confuse these two.

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FEDERAL FUNDS RATE

The interest rate charged by one commercial bank or depository institution for lending Federal Reserve deposits to another commercial bank or depository institution. This is the interest rate determined in the Federal funds market. The Federal funds rate is a key interest rate for both the banking system and the macroeconomy. It is often targeted by monetary policy and is a benchmark used to determine other interest rates in the economy.

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GREEN LOGIGUIN
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Today, you are likely to spend a great deal of time at a going out of business sale trying to buy either a wall poster commemorating last Friday (you know why) or a country wreathe. Be on the lookout for door-to-door salesmen.
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North Carolina supplied all the domestic gold coined for currency by the U.S. Mint in Philadelphia until 1828.
"In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later. "

-- Harold S. Green, MCI founder

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