
YTM: The common abbreviation for yield to maturity, which is the annual rate of return on a financial asset that is held until maturity. Yield to maturity depends on both the coupon rate and the face or par value paid at maturity. If the selling price of a financial asset is equal to its par value, then the yield to maturity is equal to the current yield and the coupon rate. However, if the asset is selling at a discount, then the yield to maturity exceeds the current yield, which is greater than the coupon rate. And if the asset is selling at a premium, then the yield to maturity is less than the current yield, which is below than the coupon rate.
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AGGREGATE EXPENDITURES EQUATION: An equation that summarizes the four aggregate expenditures on gross domestic product by the four macroeconomic sectors. In the study of Keynesian economics, this equation is commonly used to summarize the demand side of the macroeconomy. The aggregate expenditures equation actually comes in three different versions depending on how many of the four sectors and their expenditures are included. The aggregate expenditures equation is the sum of the four aggregate expenditures (consumption expenditures, investment expenditures, government purchases, and net exports). This equation provides a shorthand notion that summarizes the demand side of the economy.The general aggregate expenditures equation is: where: AE is aggregate expenditures, C is consumption expenditures, I is investment expenditures, G is government purchases, and XM is net exports, exports (X) minus imports (M).This particular version of the aggregate expenditures equation is for all four macroeconomic sectors (household sector, business sector, government sector, and foreign sector). In some circumstances reduced versions, with fewer sectors, are more useful. A threesector version that includes the household, business, and government sectors is: And the simplest aggregate expenditures equation is for the two private sectorshousehold and business. It is specified as:
Recommended Citation:AGGREGATE EXPENDITURES EQUATION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 20002024. [Accessed: August 12, 2024]. Check Out These Related Terms...            Or For A Little Background...                      And For Further Study...              
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BLUE PLACIDOLA [What's This?]
Today, you are likely to spend a great deal of time at a dollar discount store wanting to buy either a really, really exciting, actionfilled video game or a coffee cup commemorating the moon landing. Be on the lookout for telephone calls from former employers. Your Complete Scope
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The first "Black Friday" on record, a friday marked by a major financial catastrophe, occurred on September 24, 1869  A FRIDAY  when an attempted cornering of the gold market induced a financial crises and economywide depression.


"When one door closes another door opens; but we do often look so long and so regretfully upon the closed door, that we do not see the ones which open for us. "  Alexander Graham Bell, inventor


EGARCH Exponential Generalized Autoregressive Conditional Heteroskedasticity


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