Capital budgeting:
An accounting procedure that
measures both assets and liabilities.
Capital requirement:
A minimum amount of
bank capital mandated by regulators.
Central bank:
The institution responsible for the
conduct of monetary policy, such as the Federal Re-
serve in the United States.
Classical dichotomy:
The theoretical separation
of real and nominal variables in the classical
model, which implies that nominal variables do
not influence real variables. (Cf. neutrality of
money.)
Classical model:
A model of the economy derived
from the ideas of the classical, or pre-Keynesian,
economists; a model based on the assumptions that
wages and prices adjust to clear markets and that
monetary policy does not influence real variables.
(Cf. Keynesian model.)
Closed economy:
An economy that does not en-
gage in international trade. (Cf. open economy.)
Do'stlaringiz bilan baham: |