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LEGAL RESERVES: The total amount of vault cash or Federal Reserve deposits of a bank. These are the only bank assets that can be used legally to satisfy reserve requirements.

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SLOPE, CONSUMPTION LINE

The positive slope of the consumption line is also termed the marginal propensity to consume (MPC). This slope is greater than zero but less than one, reflecting induced consumption and the Keynesian psychological law of consumer behavior that consumption increases by less than the increase in income. The slope of the consumption line provides the foundation for the slope of the aggregate expenditures line and thus also affects the magnitude of the multiplier process.

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APLS

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Today, you are likely to spend a great deal of time lost in your local discount super center hoping to buy either a cell phone case or a pair of designer sunglasses. Be on the lookout for the happiest person in the room.
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Two and a half gallons of oil are needed to produce one automobile tire.
"Do you want to be safe and good, or do you want to take a chance and be great?"

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Adjusted Monetary Base
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