Examlex
Explain how a change in the money supply can affect the following in the short run:
a.
The supply of loanable funds
b.
Real GDP
c.
The price level
d.
The expected inflation rate
Capacity
The maximum level of output that a company can sustain to produce in a given period under normal circumstances.
Collateral
An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.
Credit Cost Curve
Graphical representation of the sum of the carrying costs and the opportunity costs of a credit policy.
Carrying Costs
Expenses associated with holding inventory, including storage, insurance, and opportunity costs.
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