demand deposits:Deposits that typically do not earn interest, such as checking account deposits.demand for currency:The demand created by individuals who purchase currency that is already being traded to pur-
chase goods and services in the international market.demand for loanable funds:The demand firms and the government create in the loanable funds market.demand-pull inflation:Inflation caused by an increase in aggregate demand.demand schedule:A schedule of quantity demanded at various prices; shows an inverse relationship between price and
quantity demanded.dependent variable:A variable whose value relies on another variable’s performance.deposit expansion multiplier:The reciprocal of the reserve requirement.depreciation:A reduction in the value of capital over a period of time.deregulation:Reducing and or removing the presence of governmental restrictions in an industry or environment.derived demand:The demand stemming from what a good or service can produce.determinants of demand:Factors other than price that influence the demand for a product; these include income,
taste/preference, expectations, population, price of complementary products, and price of substituted products.determinants of supply:Factors other than the price of the good that determine the supply; these include technology,
expectations of producers, number of producers, and prices of related goods and services.devaluation:A deliberate decrease in the official value of a currency.development:Having the process of research yield products that can be used to improve efficiency.differentiated products:Goods and services that vary, allowing producers price leverage.diminishing marginal utility:The principle stating that the more a good or service is consumed by an individual, the
less utility it yields with each consumption.direct relationship:A relationship of variables where the dependent variable does what the independent variable does.discount rate:The interest rate the Federal Reserve charges to banks.discounting:Reducing the value of something, usually to increase the quantity demanded.discouraged worker:An individual who has given up looking for a job after searching for employment. Discouraged
workers are not members of the labor force.diseconomies of scale:Occurs when an increase in production yields a higher average production cost.disequilibrium:A condition of imbalance between the quantities of supply and the quantities of demand (when one is
not equal to the other).disequilibrium price:The price of a good in a market that is experiencing disequilibrium.disposable income:Household income after taxes.dividend:The per-share profits of stock distributed to shareholders.division of labor:Splitting up the production of a good or service into subdivisions.double counting:An inclusion in the value of an intermediate good or service in the calculation of GDP.Glossary23 53999X Gloss.qxd 1/23/04 10:31 AM Page 247