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March 29, 2024 

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CD: The abbreviation for certificate of deposit, which is a type of savings account maintained by banks and other depository institutions that pays higher interest rates that normal savings accounts, but requires the funds not be withdrawn for a specified time period. Small denomination CDs (under $100,000) are a component of the M2 monetary aggregate. Larger denomination CDs (over $100,000) are a component of the M3 monetary aggregate.

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TYING CONTRACT: A type of contract commonly used in the late 1800s and early 1900s in which the sale of one good by a producer was made conditional on the purchase of another good. This was commonly used by firms to extended the market control they had over a product in a monopolized market to another product in a more an otherwise competitive market. The use of tying contracts was specifically outlawed by the Clayton Act in 1914. However, modern firms continue to use tying contracts with varying degrees of success.

     See also | Clayton Act | monopoly | exclusive agreement | interlocking directorate | antitrust laws | Sherman Act | price discrimination |


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SIXTH RULE OF IGNORANCE

The sixth of seven basic rules of the economy, stating that obtaining information is a costly activity that requires resources with alternative uses. As such, no one knows everything and everyone is ignorant about something.

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Today, you are likely to spend a great deal of time flipping through mail order catalogs wanting to buy either a T-shirt commemorating the first day of winter or software that won't crash your computer. Be on the lookout for pencil sharpeners with an attitude.
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Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
"The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires."

-- William Ward ‚ Texas Wesleyan University Administrator

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