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Simple Spending Multiplier
The ratio of a change in real GDP demanded to the initial change in spending that brought it about; the numerical value of the simple spending multiplier is 1/(1 + MPC); called “simple” because only consumption varies with income.
Marginal Propensity
Describes the portion of additional income that an individual is willing to spend on consumption rather than saving.
Off-Balance Sheet Financing
Off-balance sheet financing is the use of funding or financial activities not recorded on the company's balance sheet to keep debt ratios low.
Capitalizing A Lease
The process of recognizing a leased asset and related lease liability on the balance sheet, treating the lease as a purchase financed by a loan.
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