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Unformatted text preview: Real Interest - The percent of the amount borrowed paid each year to the lender by the borrower in return for the use of the money adjusted for inflation. Real Value - The value of something in taking into account the effects of inflation. Store of Value - A good that holds a value in such a way that its price is fairly insensitive inflation. Unit of Account - Something that is used universally in the description of money matters such as prices. The unit of account most commonly used in the US is the dollar. Value of Money - The purchasing power of the dollar. The amount of goods and services that can be purchased for a fixed amount of money. Velocity - The speed with which a dollar bill changes hands. The higher the velocity of money, the quicker that a given piece of currency will be traded for goods and services. Wage - The amount of money paid to workers by employers valued in current dollars....
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This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.
- Fall '08