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Definition of Demand-Pull Inflation
inflation whose initial cause is excess demand rather than cost increases. See also cost-push inflation.
Total quantity of goods and services demanded.
Combinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium.
inflation whose initial cause is cost increases rather than excess demand. See also demand-pull inflation.
An amount desired, in the sense that people are willing and able to pay to obtain this amount. Always associated with a given price.
A bank deposit that can be withdrawn on demand, such as a deposit in a checking account.
Checking accounts that pay no interest and can be withdrawn upon demand.
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.
A loan which must be repaid in full on demand.
Fiscal or monetary policy designed to influence aggregate demand for goods and services.
Short-term securities that are repayable immediately upon the holder's demand.
An event that affects the demand for goods in services in the economy.
A reduction in the rate of inflation.
A situation in which demand exceeds supply.
demands for securities to hedge particular sources of consumption risk, beyond the usual
Extremely high inflation.
The rate at which the general level of prices for goods and services is rising.
Rate at which prices as a whole are increasing.
A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level.
A clause in a contract providing for increases or decreases in inflation based on
Also called purchasing-power risk, the risk that changes in the real return the investor will
The loss in purchasing power due to inflation eroding the real value of financial assets such as cash.
The fact that future inflation rates are not known. It is a possible contributing factor to
Money market demand account
An account that pays interest based on short-term interest rates.
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
a production system dictated by product sales
A materials flow concept in which parts are only withdrawn after a
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.
Transaction demand (for money)
The need to accommodate a firm's expected cash transactions.
Variable rated demand bond (VRDB)
Floating rate bond that can be sold back periodically to the issuer.
The demand for a part by an outlying warehouse.
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