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MARGIN REQUIREMENT: The fraction of the purchase price of financial investments, like stocks and bonds, that the buyer must pay for in cash. The remaining part of the purchase price can thus be financed with credit.
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BALANCED-BUDGET MULTIPLIER A measure of the change in aggregate production caused by equal changes in government purchases and taxes. The balanced-budget multiplier is equal to one, meaning that the multiplier effect of a change in taxes offsets all but the initial production triggered by the change in government purchases. This multiplier is the combination of the expenditures multiplier, which measures the change in aggregate production caused by changes in an autonomous aggregate expenditure, and the tax multiplier which measures the change in aggregate production caused by changes in taxes.
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Two and a half gallons of oil are needed to produce one automobile tire.
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"The only profit center is the customer. " -- Peter Drucker, management consultant
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FAC
Federal Advisory Council
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