natural resources —the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits negative income tax —a tax system that collects revenue from high-income households and gives trans-fers to low-income households net exports —the value of a nation’s ex-ports minus the value of its imports, also called the trade balance net foreign investment —the purchase of foreign assets by domestic resi-dents minus the purchase of domes-tic assets by foreigners nominal exchange rate —the rate at which a person can trade the currency of one country for the cur-rency of another nominal GDP —the production of goods and services valued at cur-rent prices nominal interest rate —the interest rate as usually reported without a cor-rection for the effects of inflation nominal variables —variables mea-sured in monetary units normal good —a good for which, other things equal, an increase in income leads to an increase in demand normative statements —claims that at-tempt to prescribe how the world should be oligopoly —a market structure in which only a few sellers offer simi-lar or identical products open economy —an economy that in-teracts freely with other economies around the world open-market operations —the pur-chase and sale of U.S. government bonds by the Fed
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This note was uploaded on 08/01/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.