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INCOME EFFECT: One of two reasons for the law of demand and the negative slope of the market demand curve (the other is the substitution effect). The income effect results because a change in price gives buyers more real income, or the purchasing power of the income, even though money or nominal income remains the same. This causes changes in the quantity demanded of the good.
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INVESTMENT LINE: A graphical depiction of the relation between business investment expenditures and national income that forms one of the key building blocks for Keynesian economics. The slope of this line is positive, greater than zero, less than one, and goes by the name marginal propensity to invest. The vertical intercept of the investment line is autonomous investment. The aggregate expenditures line used in the Keynesian cross is obtained by adding this investment line, as well as, government purchases and net exports, to the consumption line. The investment line is also combined with the saving line in saving-investment model used in Keynesian economics. See also | Keynesian economics | investment expenditures | national income | marginal propensity to invest | aggregate expenditures | aggregate expenditures line | Keynesian cross | saving-investment model | induced investment | autonomous investment |
Recommended Citation:INVESTMENT LINE, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: November 27, 2022].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: investment line
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MACROECONOMIC THEORIES Scientific theories that seek to explain phenomena associated with the macroeconomy. The primary phenomena investigated are unemployment, inflation, and the level of aggregate production. Macroeconomic theories also inevitably provide policy recommendations intended to improve the performance of the economy and to correct macroeconomic problems. A few of the more noted macroeconomic theories are: Classical economics, Keynesian economics, aggregate market (AS-AD) analysis, IS-LM analysis, Monetarism, and New Classical economics.
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GRAY SKITTERY
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Today, you are likely to spend a great deal of time watching the shopping channel looking to buy either a rechargeable flashlight or storage boxes for your computer software CDs. Be on the lookout for high interest rates.
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In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
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"It had long since come to my attention that people of accomplishment rarely sat back and let things happen to them. They went out and happened to things. " -- Elinor Smith, aviator
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ARCH
Autoregressive Conditional Heteroskedasticity
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