|
|
INDUCED CHANGE: A change in aggregate expenditures, especially consumption expenditures, that is "induced" or triggered by a change in national income or gross domestic product. Induced changes form the foundation for the multiplier effect, which is set in motion by autonomous changes in aggregate expenditures. In terms of Keynesian economics and the Keynesian cross diagram, induced changes are seen as a movement along in the aggregate expenditures line. This two step process, autonomous changes causing induced changes, is key to explaining business cycle fluctuations.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 19: Money Creation | Unit 2: Fred Returns
|
Page: 9 of 23
|
- Reviewing Fred the Goldsmith, that Fred has developed several modern banking functions: safekeeping, depository, lending and fractional-reserve banking functions.
- Fred's system of tracking gold flows by issuing receipts for each deposit.
- The three main features of Fred's system:
- Knights need not withdraw the same gold deposited.
- Fred need not personally know each knight requesting services.
- These gold receipts are as good as gold and become money.
- Two options Fred has to make a loan:
- Loan some gold from the safe which could be deposited back in return for receipts.
- To loan the receipts directly.
- The importance of fractional-reserve banking and Fred's ability to create money that is used for investment and economic growth.
|
|
|
|
|
|
|
MARGINAL FACTOR COST, PERFECT COMPETITION The change in total factor cost resulting from a change in the quantity of factor input employed by a perfectly competitive firm. Marginal factor cost, abbreviated MFC, indicates how total factor cost changes with the employment of one more input. It is found by dividing the change in total factor cost by the change in the quantity of input used. Marginal factor cost is compared with marginal revenue product to identify the profit-maximizing quantity of input to hire.
Complete Entry | Visit the WEB*pedia |
|
|
YELLOW CHIPPEROON
[What's This?]
Today, you are likely to spend a great deal of time at a going out of business sale looking to buy either a New York Yankees baseball cap or several magazines on home repairs. Be on the lookout for gnomes hiding in cypress trees.
Your Complete Scope
This isn't me! What am I?
|
|
|
Helping spur the U.S. industrial revolution, Thomas Edison patented nearly 1300 inventions, 300 of which came out of his Menlo Park "invention factory" during a four-year period.
|
|
|
"Courage is the ladder on which all the other virtues mount." -- Claire Boothe Luce, diplomat, writer
|
|
CARIFTA
Caribbean Free Trade Association
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
