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Unformatted text preview: Wealth: the value of stock of assets owned at some point in time Nominal interest rate: the actual rate of interest without adjustment for the inflation rate Real interest rate: the nominal rate of interest minus the inflation rate Demand-pull inflation: a rise in the general price level resulting from an excess of total spending (demand) Cost-push inflation: an increase in the general price level resulting from an increase in the cost of production Hyperinflation: an extremely rapid rise in the general price level Wage-price spiral: a situation that occurs when increases in nominal wage rates are passed on in higher prices, which, in turn, result in even higher nominal wage rates and prices...
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This note was uploaded on 04/02/2008 for the course ACC 240 taught by Professor Lewis during the Winter '08 term at Eastern Michigan University.
- Winter '08