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I: The standard abbreviation for investment expenditures by the business sector, especially when used in the study of macroeconomics. This abbreviation is most often seen in the aggregate expenditure equation, AE = C + I + G + (X - M), where C, G, and (X - M) represent expenditures by the other three macroeconomic sectors, household, business, and foreign.

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Lesson 17: Money | Unit 2: More About Money Page: 9 of 25

Topic: Characteristics <=PAGE BACK | PAGE NEXT=>

There are four characteristics that let money do what money does.

Four characteristics:

  1. Durable: It helps to retain value from one exchange to the next and store value for future exchanges.
  2. Divisible: It lets us accurately match an amount of money to the precise value of a good.
  3. Transportable: It lets us to conduct exchanges far and wide, to go where we need to go for an exchange.
  4. Non-counterfeitable: It keeps the value of money from being diluted.

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VERTICAL MERGER

The consolidation of two or more separately-owned businesses, that have an input-output relation, into a single firm. This is one of three types of mergers. The other two are horizontal merger--two competing firms in the same industry that sell the same products--and conglomerate merger--two firms in separate, unrelated industries.

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Today, you are likely to spend a great deal of time at an auction hoping to buy either a New York Yankees baseball cap or a solid oak entertainment center. Be on the lookout for attractive cable television service repair people.
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The 22.6% decline in stock prices on October 19, 1987 was larger than the infamous 12.8% decline on October 29, 1929.
"You can't build a reputation on what you are going to do."

-- Henry Ford, automaker

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