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AD CURVE: The aggregate demand curve, which is a graphical representation of the relation between aggregate expenditures on real production and the price level, holding all ceteris paribus aggregate demand determinants constant. The aggregate demand, or AD, curve is one side of the graphical presentation of the aggregate market. The other side is occupied by the aggregate supply curve (which is actually two curves, the long-run aggregate supply curve and the short-run aggregate supply curve). The negative slope of the aggregate demand curve captures the inverse relation between aggregate expenditures on real production and the price level. This negative slope is attributable to the interest-rate effect, real-balance effect, and net-export effect.
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Lesson 18: Banking | Unit 1: What It Is
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Page: 2 of 24
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There are several types of financial intermediaries. Note that: - Intermediaries bring together buyers and sellers.
- Buyers and sellers often need an intermediary.
- Banks perform a 'financial' intermediary function.
- By maintaining financial deposits and making financial loans, banks navigate the financial side of the economy.
Other types of financial intermediaries include: - Insurance agencies, stock brokers, finance companies, mutual funds, and bond traders.
Their function: - All these entities divert household income away from consumption expenditures to investment.
- Banks are important because they maintain checking accounts that are about 60% of the money supply.
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INSTITUTION An established method or way of performing an activity that is widely accepted throughout society. Institutions provide the rules, guidelines, and structure needed to carry out day-to-day economic activities, such as production, consumption, and exchange.
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GRAY SKITTERY
[What's This?]
Today, you are likely to spend a great deal of time wandering around the shopping mall seeking to buy either a case for your designer sunglasses or arch supports for your shoes. Be on the lookout for defective microphones.
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In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
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"Man is born to live, not to prepare for life. " -- Boris Pasternak, writer
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NFS
Not For Sale
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