What Does Scarcity Have to Do with the Fact That

question 47

Essay

What does scarcity have to do with the fact that people must make choices?

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Definitions:

Maturity Matching

Matching the maturities of debt used to finance assets with the lives of the assets themselves. The debt would be amortized such that the outstanding amount declined as the asset lost value due to depreciation.

Ex Post

An analysis or consideration of events after they have happened, focusing on actual results rather than forecasts.

Asset Lives

The estimated useful life of an asset, determining over what period the asset's cost will be depreciated or amortized.

Compensating Balances

Minimum account balances that a borrower must maintain as part of a lending agreement, often used to offset a portion of the bank's cost in providing the loan.