ECON 1BB3 Study Guide - Final Guide: Nominal Interest Rate, Fallacy, Menu Cost

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Productivity, determined by: physical capital, human capital, technological knowledge, natural resources. Catch up effect the property whereby countries that start off poor tend to grow more rapidly. Foreign direct investment a capital investment that is owned and operated by a foreign entity. Foreign portfolio investment an investment that is financed with foreign money but operated by domestic residence. Gdp income earned within a country by both residents and non-residents. Gnp income earned by residents of a country both at home or abroad. Inward-oriented policies: outward-oriented policies, research and development, technological advances, knowledge is a public good, patents, population growth. Financial system consists of those institutions in the economy that helps match one person saving with another person investment. Financial intermediates financial institution through which savers can indirectly provide funds to borrowers: banks, medium of exchange item that enables transaction, mutual funds, selection or portfolio of stocks and bonds, diversify, access to professionals.