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According to the new classical model, changes in aggregate demand change real GDP
Collateral
An asset that a borrower offers to a lender as security for a loan, which may be forfeited in case of default.
Debtor Default
A situation in which a debtor fails to meet the legal obligation of debt repayment, possibly leading to legal action by the creditor.
Secured Party
An individual or entity that holds an interest, typically a security interest, in the debtor's collateral to secure payment or performance of an obligation.
Purchase-Money Security Interest
A legal claim or lien on collateral that secures payment of the price of goods bought.
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