×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide

Solutions for Chapter Module 22 : Saving, Investment, and the Financial System

Full solutions for Krugman's Economics for AP* | 2nd Edition

ISBN: 9781429218276

Solutions for Chapter Module 22 : Saving, Investment, and the Financial System

Krugman's Economics for AP* was written by and is associated to the ISBN: 9781429218276. Since 5 problems in chapter Module 22 : Saving, Investment, and the Financial System have been answered, more than 13187 students have viewed full step-by-step solutions from this chapter. This textbook survival guide was created for the textbook: Krugman's Economics for AP*, edition: 2. Chapter Module 22 : Saving, Investment, and the Financial System includes 5 full step-by-step solutions. This expansive textbook survival guide covers the following chapters and their solutions.

Key Business Terms and definitions covered in this textbook
  • appreciation

    an increase in the value of a currency as measured by the amount of foreign currency it can buy

  • bank capital

    the resources a bank’s owners have put into the institution

  • comparative advantage

    the ability to produce a good at a lower opportunity cost than another producer

  • complements

    two goods for which an increase in the price of one leads to a decrease in the demand for the other

  • diminishing marginal product

    the property whereby the marginal product of an input declines as the quantity of the input increases

  • future value

    the amount of money in the future that an amount of money today will yield, given prevailing interest rates

  • horizontal equity

    the idea that taxpayers with similar abilities to pay taxes should pay the same amount

  • implicit costs

    input costs that do not require an outlay of money by the firm

  • indexation

    the automatic correction by law or contract of a dollar amount for the effects of inflation

  • informational efficiency

    the description of asset prices that rationally reflect all available information

  • life cycle

    the regular pattern of income variation over a person’s life

  • median voter theorem

    a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter

  • perfect complements

    two goods with right-angle indifference curves

  • private goods

    goods that are both excludable and rival in consumption

  • rational people

    people who systematically and purposefully do the best they can to achieve their objectives

  • supply shock

    an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply curve and thus the Phillips curve

  • utilitarianism

    the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society

  • variable costs

    costs that vary with the quantity of output produced

  • welfare economics

    the study of how the allocation of resources affects economic well-being

  • world price

    the price of a good that prevails in the world market for that good

×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide
×
Reset your password