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A large econometric model
originated under the joint sponsorship of the Board of Governors of the
Federal Reserve System and economists at Massachusetts Institute of
Technology during the late 1960s to describe the U.S. economy.
Not highly responsive to
changes in interest rates. If a given percentage change in the interest
rate provokes a smaller percentage change in an interest sensitive item,
the item is said to be interest inelastic.
The schedule plotting
aggregate investment expenditures desired against the interest rate, with
the interest rate on the vertical axis.
The expected yield on an
investment expenditure.
The market in which the
demand for real money balances is equated to the real money supply.
The large econometric model
describing the U.S. economy jointly sponsored by the Massachusetts
Institute of Technology, the University of Pennsylvania, and the Social
Science Research Corporation. The evolved Federal Reserve-MIT model.
The terms on which mortgage
loans are extended, excluding the mortgage interest rate. They include such
things as down payment requirements, term to maturity, and maximum ratio of
loan amount to borrower income permitted.
A method for predicting the
profitability of an investment expenditure opportunity by computing its
present value for comparison with the purchase price of the asset it
involves.
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