The i% paid on short terms loans made from one bank to another.

Paper and coin money used to make transactions because the government declares it to be legal tender.

Goods that are ready for their final use by consumers and firms.

Deliberate changes in government spending and net tax collection to affect economic output, unemployment, and the price level. Fiscal policy is typically designed to manipulate ad to “fix’ the economy.

When the avg. Price of u.s. output increases, consumers naturally begin to look for similar items produced elsewhere.

A system in which only a fraction of the total money deposited in banks is held in reserve as currency.

In the case of a public good, some members of the community know that they can consume the public good while others provide for it.

Medium of exchange, store of value and unit of account.