Examlex
Match the following definitions and terms by placing the letter that identifies the best definition in the blank space next to the term.
Accelerator Effects
The phenomenon where an increase in national income leads to a proportionally larger increase in investment spending, magnifying the initial rise in income.
Automatic Stabilizer
Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to counteract economic fluctuations without the need for government intervention.
Money Market
A section of the financial market where short-term financial assets with high liquidity are traded.
Interest Rate
The amount charged by lenders as a percentage of the principal, or the amount earned on deposits over a specified period.
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