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characteristics of moneyover time therefore it became clear that for an item to act as money it must possess the following characteristics
paper moneydue to the risk of theft members of the public who owned such metal money would deposit them for safe keeping with goldsmiths and other
the historical development of moneyfor the early forms of money the intrinsic value of the commodities provided the basis for general
disadvantages of barter trade it is impossible to barter unless a has what b wants and a wants what b has this is called double coincidence of wants
the nature and function of moneythe development of money was necessitated by specialization and exchange money was needed to overcome the
causesthere are a number of explanations of the business cycle but changes in the level of investment seem to be the most likely in the simplest
open economynone of the three economies considered so far are engaged in trade with foreign countries such economies are often referred to as
real and nominal measuresoutput expenditure and income can be valued at current market price in which case we speak for example of money or nominal
disposable incomethis is the income which households actually have available to spend or to save to calculate disposal income which is indicated
transfer paymentsare any payments made to households by the government that are not made in return for the services of factors of production ie there
the governed economythe governed economy contains central authorities often simply called the government - who levy taxes on firms and households and
the frugal economyin the frugal economy households and firms look to the future and as a result undertake both saving and investmentsavingsaving is
the determination of equilibrium national incomenational income is said to be in equilibrium when there is no tendency for it either to increase or
the acceleration principlesuppose that there is a given ratio between the level of output yt at any time t and the capital stock required to produce
the multiplierin his theory keynes asserted that consumption is a function of income and so it follows that a change in investment which we may call
intended or planned investmentexpenditure on investment depends on business expectations on the chance of making profits and on the availability of
actual income and full employment incomefull employment income also called potential national is the national income that could be produced when the
autonomous expenditurealso called exogenous expenditure is any expenditure that is taken as a constant or unaffected by any economic variables within
investment investment is the process of increasing the productive capital stock of a country or can be defined as the production of goods not for
average propensity to savethe average propensity to save aps is defined as the fraction of aggregate national income which is devoted to savings
average propensity to consumethe average propensity to consume apc is defined as the fraction of aggregate national income which is devoted to
the keynesian theory of consumption functionthe theory was developed during the great depression which plagued europe and america during this
other determinants1 rate of interestis contained in the argument of the classified economists who argued that
the consumption functionthe consumption function is the relationship expressed in mathematical or diagrammatic form between planned consumption
aggregate demandthis refers to the total planned or desired spending in the economy as a whole in a given period it is made up of consumption demand