Macroeconomics

Diminishing marginal product:

A characteristic

of a production function whereby the marginal

product of a factor falls as the amount of the factor

increases while all other factors are held constant.

Discount rate:

The interest rate that the Fed

charges when it makes loans to banks.

Discounting:

The reduction in value of future ex-

penditure and receipts, compared to current expen-

diture and receipts, resulting from the presence of a

positive interest rate.

Discouraged workers:

Individuals who have left

the labor force because they believe that there is little

hope of finding a job.

Disinflation:

A reduction in the rate at which

prices are rising. (Cf. deflation, inflation.)

Disposable income:

Income remaining after the

payment of taxes.

Dollarization:

The adoption of the U.S. dollar as

the currency in another country.