Economics, 3rd Edition

money multiplier 

the amount of money the banking system 

generates with each unit of reserves

money stock 

the quantity of money circulating in the economy

money supply 

the quantity of money available in the economy

monopolistic competition 

a market structure in which many 

firms sell products that are similar but not identical

monopoly 

a firm that is the sole seller of a product without 

close substitutes

monopsony 

a market with a single buyer

moral hazard 

the tendency of a person who is imperfectly 

monitored to engage in dishonest or otherwise undesirable 

behaviour

multiplier effect 

the additional shifts in aggregate demand that 

result when expansionary fiscal policy increases income and 

thereby increases consumer spending