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AP Macroecon Unit 4 Flashcards

Terms : Hide Images
9200381912Financial Asseta paper claim that entitles the buyer to future income from the seller0
9200383772Physical Asseta tangible object that can be used to generate future income1
9200384518LiabilityAn amount owed2
9200387772Loansamounts of money borrowed which will accumulate interest3
9200387773StockA share of ownership in a corporation.4
9200388639BondA form of lending to a company or the government (city, state, or federal)5
9200390817Asset-Backed SecuritiesOwnership in a collected group of debt to be repaid by others6
9200400164Liquiditythe ease with which an asset can be converted into cash7
9200401420Transaction CostsThe costs of time and information required to carry out market exchange8
9200402297BanksFinancial institutions that accept deposits and make loans9
9200403407Mutual FundsPortfolios of assets professionally managed for others to invest in.10
9200404625Pension FundsManaged investment pools to provide retirement income for members11
9200407090Financial Intermediaryinstitution that helps channel funds from savers to borrowers12
9200418110Wealth EffectA change in consumer spending caused by a change in the value of owned assets13
9200419884Interest Rate Effecthigher prices lead to inflation which leads to less borrowing and a lowering of RGDP14
9200426621StagflationA period of falling output and rising prices15
9200428019Inflationary GapWhen aggregate output is above potential output16
9200428020Recessionary GapWhen aggregate output is below potential output17
9200429979Fiscal PolicyGovernment policy that attempts to manage the economy by controlling taxing and spending.18
9200429980Monetary PolicyThe management of the money supply and interest rates19

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