Absolute (Money) Price

Money Market Mutual Fund (MMMF)
An interest-earning account at a mutual
fund company, for which a minimum
balance is usually required and most of which
offer limited check-writing privileges.
Only retail MMMFs are part of M2.
Monitor A person in a business firm who
coordinates team production and reduces
shirking.
Monopolistic Competition A theory
of market structure based on three assumptions: many sellers and buyers, firms
producing and selling slightly differentiated
products, and easy entry and exit.
Monopoly A theory of market structure
based on three assumptions: There is one
seller, it sells a product that has no close
substitutes, and the barriers to entry are
extremely high.
Monopsony A single buyer in a factor
market.
Moral Hazard A condition that exists
when one party to a transaction changes his
or her behavior in a way that is hidden from
and costly to the other party.
Mortgage-Backed Securities (MBS) A
type of asset-backed security that is secured
by a mortgage or collection of mortgages.
Multiplier The number that is multiplied by
the change in autonomous spending to obtain
the overall change in total spending. The
multiplier (m) is equal to 1 4 (1 2 MPC). If
the economy is operating below Natural Real
GDP, then the multiplier is the number that
is multiplied by the change in autonomous
spending to obtain the change in Real GDP.
N