Course glossary

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During lectures you will learn new words. Using this link you are welcome to add them to our "course glossary", so that other students will be able to see them and learn. Let's make our own useful glossary and help each other to learn new words! By the way, there are already some worlds which should be familiar for you till the end of the course, try to cover them when you mill have free time.


Browse the glossary using this index

Special | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL

F

Federal funds rate

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

Fiat money

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

Final goods

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

Fiscal policy

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.

Foreign sector substitution effect

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

Fractional reserve banking

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

Free rider problem

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.

Functions of money

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