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INCOME RECEIVED BUT NOT EARNED: Abbreviate IRBNE, this is income received by the household sector, but not earned by a factor of production. The three types of income received but not earned are Social Security payments, unemployment compensation payments, and welfare payments. These are also the three key transfer payments from the government sector to the household sector. The basic goal of transfer payments is to transfer a portion of the income earned by the factors of production (because they HAVE income) to other members of the household sector (who presumably NEED more income than they have). IRBNE is added to national income to derive personal income.
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Lesson 19: Money Creation | Unit 4: The Multiplier
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Page: 18 of 23
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Topic:
The Money Multiplier
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Checkable deposits are only part of the money supply.- Looking only at checkable deposits, a $100 deposit gives us $1,000 with a deposit multiplier of 10.
However:- Money, in total, doesn’t expand by $1,000.
- First: Banks might keep a few excess reserves, which limits deposit and money creation.
- Second: Loans might leak out of checkable deposits and into savings deposits, which limits money creation.
- Third: Loans might leak out of checkable deposits and into cash, which limits reserves and money creation.
Note:- The Federal Reserve uses a complex money multiplier to control the amount of money circulating in the economy.
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COMPARATIVE STATICS The technique of comparing the equilibrium resulting from a change in a determinant, or shock to a model, with the equilibrium that existed prior to the change. Comparative statics is the primary analytical technique used in the study of economics.
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BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time browsing through a long list of dot com websites wanting to buy either a birthday greeting card for your father or a T-shirt commemorating the first day of spring. Be on the lookout for vindictive digital clocks with revenge on their minds.
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Paper money used by the Commonwealth of Massachusetts prior to the U.S. Revolutionary War, which was issued against the dictates of Britain, was designed by patriot and silversmith, Paul Revere.
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"When you play, play hard; when you work, don't play at all. " -- Theodore Roosevelt, 26th US president
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