Sunday  January 19, 2020
 AmosWEB means Economics with a Touch of Whimsy!
 GAME THEORY: An analysis that illustrates how choices between two plays affect the outcome of a "game." Game theory is commonly used in economics to illustrate interdependent decision-making among oligopoly firms. It illustrates that one firm makes a decision based on the decision expected from the other firm. One key conclusion from the game theory analysis is that firms often make decisions that are "second best" or the "lesser of two evils." The classic example of such a decision is the prisoners' dilemma, in which two prisoners both confess to a crime to avoid harsher punishment when not confessing would avoid any punishment.
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DEPOSIT MULTIPLIER: The magnified change in checkable deposits resulting from a change in bank reserves. The simple deposit multiplier is the inverse of the required-reserves ratio. If banks keep 10 percent of their deposits in reserves, then the deposit multiplier is the inverse of 10 percent, or 10.

See also | money | money creation | bank | required reserves | reserves |

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DEPOSIT MULTIPLIER, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2020. [Accessed: January 19, 2020].

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MARGINAL ANALYSIS

A basic technique used in economics that analyzes small, incremental changes in key variables. Marginal analysis is the primary analytical approached used in the study of markets, production, consumption, business cycles, and economic policies. It not only reflects how most economic decisions are made, it also lends itself to mathematical and graphical analysis.

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 A thousand years before metal coins were developed, clay tablet "checks" were used as money by the Babylonians.
 "You are never given a dream without also being given the power to make it true."-- Richard Bach, Author