Economics

A balanced budget (also known as a financial plan) is one in which revenues equal expenditures, with no budget deficit or surplus. This phrase is…

When a company changes its prices, it incurs menu costs, which are a sort of transaction cost. The term comes from the expense of restaurants…

The sticky wage theory is an economic concept that describes how wages react slowly to shifts in the labor market. Sticky wages is an idea…

The wage-price spiral (also known as the price/wage spiral or the wage/price spiral) is a macroeconomic theory that explains the cause-and-effect relationship between increasing wages…

The Commercial Paper Funding Facility (CPFF) was a scheme formed by the Federal Reserve Board of the United States to boost liquidity in the short-term…

The Exchange Stabilization Fund (ESF) is a US Treasury Department emergency reserve fund that is typically used for foreign exchange intervention. It can be used…

The negative income tax (NIT) is a possible tax reform that is often debated in combination with the guaranteed basic income (GBI). It is a…

The earned income credit (EIC), also known as the earned income tax credit (EITC), is a tax credit available to low-to-moderate-income working families in the…

After paying local, state, and federal taxes, disposable income, also known as disposable personal income (DPI), is the money left over from an individual’s salary.…

The marginal propensity to save (MPS) is the percentage of additional income that customers save. It’s the slope of the line that connects saving and…

The average propensity to consume (APC) is the proportion of total disposable income spent on goods and services by households. For both individual consumers and…

The change in imports triggered by a change in income is referred to as the marginal propensity to import (MPM). The theory is that as…