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ZERO COUPON BOND: Also termed a zero bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay interest, zero coupon bonds are sold at a discount. For example, a $10,000 zero coupon bond that matures in one year, would generate a 10% return if it sold at a discount of $9,000.

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CONSUMPTION EXPENDITURES DETERMINANTS

Ceteris paribus factors, other than income, that are held constant when the consumption line is constructed and which cause the consumption line to shift when they change. Some of the more important consumption expenditures determinants are interest rates, consumer confidence, wealth, and taxes. Due to the relation between consumption and saving, these determinants also cause corresponding, and opposite, shifts of the saving line.

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Today, you are likely to spend a great deal of time at an auction wanting to buy either several orange mixing bowls or clothing for your pet dog. Be on the lookout for rusty deck screws.
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Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
"Concentrate all your thoughts upon the work at hand. The sun's rays do not burn until brought to a focus."

-- Alexander Graham Bell, inventor

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