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EASY MONEY: A term used when the Federal Reserve System pursues expansionary monetary policy. In other words, to stimulate our economy out of recession, the Fed increases the amount of money in the economy or makes it "easier" for people to get money (usually through bank loans).

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DECREASING RETURNS TO SCALE

A given proportional change in all resources in the long run results in a proportional smaller change in production. Decreasing returns to scale exists if a firm increases ALL resources--labor, capital, and other inputs--by a given proportion (say 10 percent) and output increases by less than this proportion (that is, less than 10 percent). This is one of three returns to scale. The other two are increasing returns to scale and constant returns to scale.

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