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LONG-RUN ADJUSTMENT: The combined adjustment of an industry and of each firm in the industry to an equilibrium condition that based on (1) profit maximization when all inputs are variable and (2) the entry and exit of firms. The complete adjustment is undertaken by both perfect competition and monopolistic competition. There are two parts of this adjustment process. One is the adjustment of each firm to the appropriate factory size that maximizes long-run profit. The other is the entry of firms into the industry or exit of firms out of the industry, to eliminated economic profits or economic losses. The end result of this long-run adjustment is different for the two market structures based on the fact that perfect competition has equality between price and marginal revenue, while monopolistic competition does not.
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MONEY MULTIPLIER The ratio of the change in money to the change in bank reserves. The money multiplier indicates the magnified change in money (checkable deposits and currency) that results from an injection of additional reserves into the banking system. As the name suggests, the change in money is typically a multiple of the initial change in bank reserves. The deposit expansion multiplier also forms the core of the money multiplier, both of which depend on the reserve requirement ratio.
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WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time at an auction hoping to buy either a how-to book on home remodeling or a tall storage cabinet with five shelves and a secure lock. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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Junk bonds are so called because they have a better than 50% chance of default, carrying a Standard & Poor's rating of CC or lower.
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"Do not wait; the time will never be just right " -- Napoleon Hill, author
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AACCLA
Association of American Chambers of Commerce in Latin America
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