- 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® (High School) | 2nd Edition
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
an increase in the value of a currency as measured by the amount of foreign currency it can buy
the idea that people should pay taxes based on the benefits they receive from government services
the theoretical separation of nominal and real variables
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
a table that shows the relationship between the price of a good and the quantity demanded
a curve that shows consumption bundles that give the consumer the same level of satisfaction
isk that affects all companies in the stock market
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
nominal exchange rate
the rate at which a person can trade the currency of one country for the currency of another
a person for whom another person, called the agent, is performing some act
the ability of an individual to own and exercise control over scarce resources
the tax revenue that the government has left after paying for its spending
a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries
quantity theory of money
a theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate
the theory that people optimally use all the information they have, including information about government policies, when forecasting the future
a tax for which highincome taxpayers pay a smaller fraction of their income than do low-income taxpayers
a situation in which quantity supplied is greater than quantity demanded
an excess of exports over imports