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CAPITAL MARKET: A financial market that trades bonds, stocks, or any other long-term financial instruments used by businesses to raise funds. The term "capital" comes from the notion that business commonly get their funds to finance investment in capital from these markets. Compare money market.

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MONEY: Anything that is generally accepted in exchange as payment for goods and services. The emphasis is on "any," because any item or asset can serve as money so long as it is generally accepted in payment throughout an economy. While the key function of money is acting as a medium of exchange, money also functions as a store of value, standard unit of account, and standard of deferred payment

     See also | currency | checkable deposits | money characteristics | money functions | barter | M1 | money supply | Federal Reserve System | money creation | bank | fractional-reserve banking | government functions | Federal Reserve note |


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AGGREGATE DEMAND CURVE

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 (AD) curve is one side of the graphical presentation of the aggregate market. The other side is occupied by the long-run aggregate supply curve and/or 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, real-balance, and net-export effects.

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Today, you are likely to spend a great deal of time wandering around the shopping mall trying to buy either a computer that can play music and burn CDs or a T-shirt commemorating last Friday (you know why). Be on the lookout for crowded shopping malls.
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The word "fiscal" is derived from a Latin word meaning "moneybag."
"We succeed only as we identify in life, or in war, or in anything else, a single overriding objective, and make all other considerations bend to that one objective. "

-- President Dwight D. Eisenhower

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