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INDIFFERENCE CURVE: A curve that graphically depicts various combinations of goods that generate the same level of utility to a consumer. In other words, a consumer is "indifferent" among any of the bundles because they all provide the same satisfaction. Indifference curves are combined with a budget line or constraint for indifference curve analysis used to explain many aspects of demand, including the slope of the demand curve and the income and substitution effects.
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Lesson 11: Circular Flow | Unit 3: Government
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Page: 14 of 22
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Topic:
Government Borrowing
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When government does not collect enough taxes to pay for purchases, it borrows through the financial markets.- The federal deficit is borrowing by the federal government to make up the difference between taxes and spending.
- State and local governments also borrow through financial markets.
- The green flow leaving the financial markets and entering the government sector is government borrowing.
- Government sector purchases can be less than taxes, which means government saves to the financial markets.
- Many state and local governments actually save. State and local saving reduces total government sector borrowing in times of high federal deficits.
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INJECTIONS-LEAKAGES MODEL A macroeconomic model that balances non-consumption expenditures on production (injections) and non-consumption uses of income (leakages) that is used to identify the equilibrium level of, and analyze disruptions to, aggregate production and income. The injections-leakages model is based on the principles of Keynesian economics and provides an alternative to the standard aggregate expenditures (Keynesian cross) analysis. The three injections included in the model are investment expenditures, government purchases, and exports. The three leakages included in the model are saving, taxes, and imports. Three variations are the two-sector injections-leakages model (or saving-investment model), three-sector injections-leakages model, and four-sector injections-leakages model.
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PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time driving to a factory outlet hoping to buy either a really, really exciting, action-filled video game or a coffee cup commemorating the moon landing. Be on the lookout for pencil sharpeners with an attitude.
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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
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"We succeed in enterprises (that) demand the positive qualities we possess, but we excel in those (that) can also make use of our defects. " -- Alexis de Tocqueville, statesman, author
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NFS
Not For Sale
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