- Module 22 .1: Rank the following assets from the lowest level to the highest leve...
- Module 22 .2: What relationship would you expect to find between the level of dev...
- Module 22 .3: The federal government is said to be dissaving when a. there is a b...
- Module 22 .4: A nonprofit institution collects the savings of its members and inv...
- Module 22 .5: A financial intermediary that provides liquid financial assets in t...
Solutions for Chapter Module 22 : Saving, Investment, and the Financial System
Full solutions for Krugman's Economics for AP* | 2nd Edition
an increase in the value of a currency as measured by the amount of foreign currency it can buy
the resources a bank’s owners have put into the institution
the ability to produce a good at a lower opportunity cost than another producer
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
the amount of money in the future that an amount of money today will yield, given prevailing interest rates
the idea that taxpayers with similar abilities to pay taxes should pay the same amount
input costs that do not require an outlay of money by the firm
the automatic correction by law or contract of a dollar amount for the effects of inflation
the description of asset prices that rationally reflect all available information
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
two goods with right-angle indifference curves
goods that are both excludable and rival in consumption
people who systematically and purposefully do the best they can to achieve their objectives
an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply curve and thus the Phillips curve
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society
costs that vary with the quantity of output produced
the study of how the allocation of resources affects economic well-being
the price of a good that prevails in the world market for that good