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The slope of the consumption schedule is equal to the marginal propensity to consume.
Tax Free Municipal Bond
A debt security issued by a state, municipality, or county to finance its capital expenditures, exempt from federal taxes and, in some cases, state and local taxes.
Taxable Yield
The yield on an investment before the adjustment for taxes, representative of the income an investor would receive if it were not taxed.
Tax Bracket
A range of incomes taxed at a particular rate, with the tax system being progressive, meaning the rate increases as income does.
Market Value Weighted Index
An index in which each constituent is weighted according to its market value, so larger companies have a bigger impact on the index's performance.
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