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BALANCED-BUDGET MULTIPLIER: The ratio of the change in aggregate output (GDP) to a change in government spending, which are matched by an equal change in taxes. This is termed a balanced-budget multiplier because the change in spending is matched by the change in taxes and thus the government's budget deficit or surplus is neither increased nor decreased. If the government had a balanced budget before the changes, then it has one after the changes.

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CORPORATE PROFITS DISTRIBUTION: Corporate profits are the excess revenue received by corporations over their accounting costs of production. Total corporate profits are distributed in three basic ways. One portion is used to pay corporate profits taxes. A second is undistributed corporate profits retained by corporations to finance capital investment. And a third is then paid out as dividends to shareholders, or corporate owners.

     See also | corporate profits | accounting cost | accounting profit | corporate profits tax | undistributed corporate profits | dividend | corporate stock |


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CORPORATE PROFITS DISTRIBUTION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 21, 2024].


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FEDERAL FUNDS

A common term for Federal Reserve deposits held by commercial banks, especially when these deposits are loaned between banks through the Federal funds market. The interest rate charged for these interbank loans is termed the Federal funds rate. Federal funds are used by individual banks to meet reserve requirements and the total held by the banking system is manipulated by the Federal Reserve System in the conduct of monetary policy.

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