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December 19, 2018 

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GOVERNMENT BORROWING: The demand for loans obtained through the financial markets by the government sector to finance government purchases over and above taxes. In terms of the circular flow, this is one of two demands for household saving diverted into financial markets, the other is investment borrowing.

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ABSTRACTION

Simplifying the complexities of the real world by ignoring (hopefully) unimportant details while doing economic analysis. Abstraction is an essential feature of the scientific method. Hypothesis verification, model construction, and comparative static analysis are not possible without abstraction.

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The Risky Business Of INSURANCE

We've avoided the clutches of Smilin' Ted, the insurance guy, during our saunter through economy, but our luck has run out. Here he comes, ready to offer you, me, and everyone else within earshot the chance to buy auto, health, life, and property insurance. If you really, REALLY care to ask, I'm sure that Smilin' Ted has other insurance possibilities as well. But, I'm not going to ask. If YOU want to know, then YOU have to ask.
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[What's This?]

Today, you are likely to spend a great deal of time surfing the Internet trying to buy either storage boxes for your winter clothes or several magazines on time travel. Be on the lookout for cardboard boxes.
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This isn't me! What am I?

The first U.S. fire insurance company was established by Benjamin Franklin in 1752 in Philadelphia.
"How wonderful it is that nobody need wait a single moment before starting to improve the world. "

-- Anne Frank, diarist

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Journal of Public Economics
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