Macroeconomics

Demand deposits:

Assets that are held in banks

and can be used on demand to make transactions,

such as checking accounts.

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Demand-pull inflation:

Inflation resulting 

from shocks to aggregate demand. (Cf. cost-push

inflation.)

Demand shocks:

Exogenous events that shift the

aggregate demand curve.

Depreciation:

1. The reduction in the capital stock

that occurs over time because of aging and use. 2. A fall

in the value of a currency relative to other currencies

in the market for foreign exchange. (Cf. appreciation.)

Depression:

A very severe recession.

Devaluation:

An action by the central bank to

decrease the value of a currency under a system of

fixed exchange rates. (Cf. revaluation.)