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Chapter 20

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Term
Definition
Capital   show
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show An increase in the use of capital which increases the ratio of capital to labour.  
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Capital Goods   show
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show An increase in the use of capital which leaves the ratio of capital to labour unchanged.  
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show Those goods that give consumers utility and for which they are willing to pay a price.  
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show The process of adding to the stock of capital  
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show Gross investment as a percentage of GNP.  
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show The desire of an individual to hold his/her wealth cash form.  
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WMarginal Efficiency of capital   show
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Nominal Rate of Interest   show
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Saving   show
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show The nominal rate of interest minus the rate of inflation.  
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Created by: jmartineconomics
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