economic matters (including the preparation of the annual Economic Report of the President). Cash paid to farmers countercyclical payments (CCPs) s ubsidies when market prices for certain crops drop below targeted prices. Payments are based on previous production and are received regardless of the current crop grown. craft union A labor union that limits its membership to workers with a particular skill (craft). creative destruction The hypothesis that the creation of new products and production methods simultaneously destroys the market power of existing monopolies. credible threat In a statement of harmful intent by game theory, one party that the other party views as believable; often issued in conditional terms of do this; we will do “if you that.” credit An accounting item that increases the value of an asset (such as the foreign money owned by the residents of a nation). An association of persons who have a common tie credit union (such as being employees of the same firm or members of the same labor union) that sells shares to (accepts deposits from) its members and makes loans to them. cross elasticity of demand The ratio of the percentage change in of one good to the percentage change in the q uantity demanded price of some other good. A positive coefficient indicates the two products are a negative coefficient indicates they s ubstitute goods; are complementary goods. crowding model of occupational discrimination A model of labor markets suggesting that has kept occupational discrimination many women and minorities out of high-paying occupations and forced them into a limited number of low-paying occupations. crowding-out effect A rise in interest rates and a resulting decrease in caused by the Federal p lanned investment government’s increased borrowing to finance budget deficits and refinance debt. currency Coins and paper money. currency appreciation (See exchange-rate appreciation.) currency depreciation (See exchange-rate depreciation.) A buying and selling of its currency intervention government’s own currency or foreign currencies to alter international exchange rates. current account The section in a international balance of nation’s that records its exports and imports of goods and services, payments its net and its investment income, net transfers. cyclical asymmetry The idea that may be more monetary policy successful in slowing expansions and controlling than in inflation extracting the economy from severe recession. cyclical deficit A Federal that is caused by a recession budget deficit and the consequent decline in tax revenues.
economic matters (including the preparation of the annual Economic Report of the President). countercyclical payments (CCPs) Cash s ubsidies paid to farmers when market prices for certain crops drop below targeted prices. Payments are based on previous production and are received regardless of the current crop grown. craft union A labor union that limits its membership to workers with a particular skill (craft). creative destruction The hypothesis that the creation of new products and production methods simultaneously destroys the market power of existing monopolies. credible threat In game theory, a statement of harmful intent by one party that the other party views as believable; often issued in conditional terms of “if you do this; we will do that.” credit An accounting item that increases the value of an asset (such as the foreign money owned by the residents of a nation). credit union An association of persons who have a common tie (such as being employees of the same firm or members of the same labor union) that sells shares to (accepts deposits from) its members and makes loans to them. cross elasticity of demand The ratio of the percentage change in q uantity demanded of one good to the percentage change in the price of some other good. A positive coefficient indicates the two products are s ubstitute goods; a negative coefficient indicates they are complementary goods. crowding model of occupational discrimination A model of labor markets suggesting that occupational discrimination has kept many women and minorities out of high-paying occupations and forced them into a limited number of low-paying occupations. crowding-out effect A rise in interest rates and a resulting decrease in p lanned investment caused by the Federal government’s increased borrowing to finance budget deficits and refinance debt. currency Coins and paper money. currency appreciation (See exchange-rate appreciation.) currency depreciation (See exchange-rate depreciation.) currency intervention A government’s buying and selling of its own currency or foreign currencies to alter international exchange rates. current account The section in a nation’s international balance of payments that records its exports and imports of goods and services, its net investment income, and its net transfers. cyclical asymmetry The idea that monetary policy may be more successful in slowing expansions and controlling inflation than in extracting the economy from severe recession. cyclical deficit A Federal budget deficit that is caused by a recession and the consequent decline in tax revenues.
honors_textbook_glossary.docx