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FINANCIAL WEALTH: Assets, or wealth, that is based on ownership of financial assets, such as stocks, bonds, money, and government securities. Also termed paper wealth. Financial wealth represents ownership of physical or real wealth.

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PHYSICAL WEALTH, AGGREGATE DEMAND DETERMINANT

One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and that shifts the aggregate demand curve when it changes. An increase in the physical wealth causes a decrease (leftward shift) of the aggregate curve. A decrease in the physical wealth causes an increase (rightward shift) of the aggregate curve. Other notable aggregate demand determinants include interest rates, federal deficit, inflationary expectations, and the money supply.

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