Money5 - Real Interest - The percent of the amount borrowed...

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Money Terms Nominal GDP - The total value of all goods and services produced in a country valued at current prices. Nominal Interest - The percent of the amount borrowed paid each year to the lender by the borrower in return for the use of the money not taking inflation into account. Nominal Value - The value of something in current dollars without taking into account the effects of inflation. Output - The amount of goods and services produced within an economy. Price Level - The overall level of prices of goods and services in an economy. This is used in the calculation of inflation rates. Purchasing Power - The real value of a dollar. This describes the quantity of goods and services that can be purchased for a dollar, taking into account the effects of inflation. Quantity Theory of Money - The theory that says that the value of money is based on the amount of money in circulation, that is, the money supply.
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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.

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