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BULL MARKET: A condition of the stock market in which stock prices are generally rising and most of the participants expect this to continue. In other words, the stock market is into an extended period of "charging ahead" like a mad bull. A bull market usually occurs because investors see a healthy, vibrant, profitable economy on the horizon. Compare bear market.

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Lesson 17: Money | Unit 5: Scarcity Page: 25 of 25

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  • That money is critical to the production, consumption, and exchange activities that take place in a complex economy.
  • That money improves efficiency by reducing the amount of resources that would be needed for barter exchanges and that it improves efficiency by letting resources specialize in production.
  • That money is not the root of evil, but it can cause problems.
  • That government is given regulatory responsibility over money, but government leaders could also use money control for personal reasons.

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INTEREST-RATE EFFECT

A change in aggregate expenditures on real production, especially those made by the household and business sectors, that results because a change in the price level alters the interest rate which then affects the cost of borrowing. This is one of three effects underlying the negative slope of the aggregate demand curve associated with a movement along the aggregate demand curve and a change in aggregate expenditures. The other two are real-balance effect and net-export effect.

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Today, you are likely to spend a great deal of time visiting every yard sale in a 30-mile radius looking to buy either a T-shirt commemorating the 2000 Olympics or a genuine fake plastic Tiffany lamp. Be on the lookout for empty parking spaces that appear to be near the entrance to a store.
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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.
"Man is born to live, not to prepare for life. "

-- Boris Pasternak, writer

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