Macroeconomics

Transactions theories of money demand:

Theories that explain how much money people

choose to hold and that stress the role of money as 

a medium of exchange. (Cf. portfolio theories of

money demand.)

Transfer payments:

Payments from the govern-

ment to individuals that are not in exchange for

goods and services, such as Social Security payments.

(Cf. government purchases.)

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Transitory income:

Income that people do not

expect to persist into the future; current income

minus normal income. (Cf. permanent income.)

Underground economy:

Economic transactions

that are hidden in order to evade taxes or conceal

illegal activity.

Unemployment insurance:

A government program

under which unemployed workers can collect benefits

for a certain period of time after losing their jobs.