Ap Macroeconomics Unit 4

Front

Increase in aggregate price level increases money demand

Back

Aggregate Price level

Front

achieved when the nominal interest rate is such that money demand & money supply are equal

Back

Equilibrium

Front

nonphysical asset that entitles the buyer to future income from the seller.

Back

financial asset

Front

lending agreement between an individual lender and an individual borrower.

Back

Loan

Front

the nominal interest rate adjusted for inflation

Back

real interest rate

Front

The availability of money; how quickly you can convert it into cash in your hand is its _______.

Back

liquidity

Front

Who pays interest on a loan?

Back

The borrower

Front

Which is an asset? Options: Mortgage, Balance on a credit card or loan, Boat loan, Stocks you own

Back

Stocks you own

Front

The cost of borrowed money, usually expressed as a percentage

Back

interest

Front

This is a duty of repayment, any time you owe someone money

Back

debt