defenitions Flashcards
1
Q
inflation
A
the persistent average rising prices of goods and services across a whole economy
2
Q
investment
A
the planned spending by firms on capital goods
3
Q
real interest rate
A
nominal interest rate - inflation . the cost of borrowing adjusted to the inflation level
4
Q
disinflation
A
when the prices of a good across an economy are still rising but at a slower rate
5
Q
the multiplier effect
A
an initial injection in Aggregate demand leads to a further increase in national income
