Glossary Category: Macroeconomy

real per capita national income

Real per capita national income represents the average income earned by each person in a country. To make

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The business cycle (also called the trade cycle) refers to the natural ups and downs of an economy

The loanable funds theory, supported by economists like Irving Fisher, describes how interest rates are determined in a

Interest rate determination is explained by two primary economic theories: Loanable funds theory (Classical): This theory suggests that

Securities are financial assets that can be traded. Common examples include shares (ownership in a company), bonds, and

The velocity of circulation is the average number of times a single unit of currency is spent on

Liquidity describes how quickly and easily an asset can be turned into cash without losing much of its

Credit creation is the way commercial banks increase the total amount of money in an economy. They do