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LEGAL RESERVES: The total amount of vault cash or Federal Reserve deposits of a bank. These are the only bank assets that can be used legally to satisfy reserve requirements.

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SAVING-INVESTMENT MODEL: A model used to identify equilibrium in Keynesian economics based on injections (investment, I) and leakages (saving, S) for the two basic sectors (household and business). Equilibrium is achieved at the intersection of the saving line, S, and the investment line, I.

     See also | injections-leakages model | two-sector injections-leakages model | Keynesian economics | Keynesian equilibrium | saving line | investment line | injection | leakage | household sector | business sector | two-sector Keynesian model |


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SAVING-INVESTMENT MODEL, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2019. [Accessed: August 24, 2019].


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EXCESS DEMAND

A disequilibrium condition in a competitive market in which the quantity demanded is greater than the quantity supplied. Excess demand is another way to say shortage. It also goes by the common term of sellers' market. Excess demand is one of two disequilibrium states of the market. The other is excess supply (or surplus).

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Today, you are likely to spend a great deal of time browsing about a thrift store trying to buy either a rechargeable flashlight or storage boxes for your computer software CDs. Be on the lookout for letters from the Internal Revenue Service.
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