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CAPITAL ACCOUNT SURPLUS: An imbalance in a nation's balance of payments capital account in which payments received by the country for selling domestic assets exceed payments made by the country for purchasing foreign assets. In other words, investment by the domestic economy in foreign assets is greater than foreign investment in domestic assets. This is generally a desireable situation for a domestic economy. However, in the wacky world of international economics, a capital account surplus is often balanced by a current account deficit, which is not generally considered a desireable situation. If, however, the current account does not balance out the capital account, then a capital account surplus contributes to a balance of payments surplus.
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Lesson 8: Market Shocks | Unit 4: Double Shifts
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Page: 17 of 20
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- How the market equilibrium can be disrupted by simultaneous shifts in the demand and supply curves.
- The four possible double shifts in the market: more demand and less supply, more demand and more supply, less demand and less supply, and less demand and more supply.
- That an increase in demand and an increase in supply results in an increase in quantity and an indeterminant change in price.
- That an increase in demand and a decrease in supply results in an increase in price and an indeterminant change in quantity.
- That a decrease in demand and a decrease in supply results in a decrease in quantity and an indeterminant change in price.
- That a decrease in demand and an increase in supply results in an decrease in price and an indeterminant change in quantity.
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AUCTION A formal market exchange in which prospective buyers make bids to purchase a commodity. An auction is an effective way of exchanging commodities by bringing together buyers and sellers. Auctions are commonly used to exchange financial instruments, agricultural commodities, personal assets, and works of art. Three notable types of auctions are English, Dutch, and sealed-bid.
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BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time flipping through the yellow pages hoping to buy either several magazines on computer software or a T-shirt commemorating the second moon landing. Be on the lookout for telephone calls from long-lost relatives.
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Much of the $15 million used by the United States to finance the Louisiana Purchase from France was borrowed from European banks.
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"The more you praise and celebrate your life, the more there is in life to celebrate." -- Oprah Winfrey
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MPC
Marginal Propensity to Consume
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