Deficits, Surpluses, & the National Debt
Savings & the Financial System
Financial Assets & Their Markets
Investing in Equities and Options
Measuring the Nation's Output and Income
100
Spending in excess of revenues collected
What is deficit spending?
100
The dollars that become available when people abstain from consumption.
What are savings?
100
Someone who inherits the ownership of a financial asset if the purchaser dies.
What is a beneficiary?
100
Stocks that represent ownership shares in corporations.
What are equities?
100
Net national product less indirect business taxes.
What is national income?
200
Total amount borrowed from investors to finance deficit spending.
What is national debt?
200
Network of savers, investors, and financial institutions that work together to transfer savings to investors.
What is a financial system?
200
Stated interest on a corporate, municipal, or government bond.
What is a coupon rate?
200
Place where buyers and sellers meet to trade stocks.
What is the securities exchange?
200
Dollar value of all final goods, services, and structures produced within a country's borders in a year.
What is gross domestic product?
300
Special accounts used to fund specific types of expenditures.
What are trust funds?
300
Claims on the property and the income of the borrower
What are financial assets?
300
Exceptionally risky bonds.
What are junk bonds?
300
Electronic marketplace for securities that are not traded on an organized exchange.
What is the over-the-counter market?
300
Dollar value of all final goods, services, and structures produced in one year with labor and property supplied by a country's residents.
What is gross national product?
400
Higher-than-normal interest rates caused by heavy government borrowing.
What is crowding-out effect?
400
Regular payment intended to provide income security to someone who has worked a certain number of years or reached a certain age.
What is a pension?
400
Bonds issued by state and local governments.
What are municipal bonds?
400
Period during which stock market prices move down for several months or years in a row.
What is a bear market?
400
Calculated by subtracting depreciation from GNP.
What is net national product?
500
Broad social programs for eligible individuals.
What are entitlements?
500
Degree to which the outcome is uncertain but a probable outcome can be estimated.
What is risk?
500
Long-term, tax-sheltered time deposits that can be set up as part of an individual retirement plans.
What are IRAs?
500
Period during which stock market prices move up for several months or years in a row.
What is a bull market?
500
Macroeconomic model describing aggregate demand by the consumer, investment, government, and foreign sectors.
What is output-expenditure model?
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