Compare money with wealth and income, Macroeconomics

Assignment Help:

Compare Money with wealth and income

Money isn't the same as wealth. An individual may be very wealthy however have no money (for instance by owning stocks and real estate). Another individual may have a lot of money however no wealth. This would be the case if an individual with no wealth borrows money from a bank. She would have money (for instance in the form of a deposit in the bank) however no wealth as this deposit exactly matches the outstanding debt. Be careful with this distinction: do not say "Anna has a lot of money" if you mean that Anna is wealthy.

Money is not the same as income and income is not the same as wealth. Income is a flow (for example is currency units per month) while money or wealth is a stock (measured at a particular point in time).

 


Related Discussions:- Compare money with wealth and income

Understand external environment, Why is it important for an organization to...

Why is it important for an organization to study and understand its external environment?

What is independent monetary policy, What is independent monetary policy ...

What is independent monetary policy Advantages: First, in a freely-floating exchange rate, the exchange rate must move down or up to correct a payments imbalance. Second, monet

Descriptive statistics from the data, Table below shows the descriptive sta...

Table below shows the descriptive statistics which have been condensed from the data sheet for the period 1987 Q4 to 2011 Q3.   GDP (%) Real Exchan

Commercial banks: balance sheet, Commercial Banks: Balance Sheet The ac...

Commercial Banks: Balance Sheet The accompaning table gives the balance sheet of a commercial bank in a simplified format. The balance sheet contains particulars of a Bank's cu

What are the four different measures of gdp, What are the Four different me...

What are the Four different measures of GDP Using circular flow model we see that there are 4 equivalent techniques of measuring GDP: Using the definition: market value

How much money can banks create, Q. How much money can banks create? Do...

Q. How much money can banks create? Does that mean that banks can create an unlimited amount of money? No the answer is no - it would require them to lend an unlimited amount o

Reaganomics, Reaganomics Supply-side economics or New Classical Econom...

Reaganomics Supply-side economics or New Classical Economics has gained distinct prominence in the early 1980s with the election in the U.S.A of a conservative government unde

Recent article in the cincinnati enquirer, A recent article in the Cincinna...

A recent article in the Cincinnati Enquirer reported that the mean labor cost to repair a heat pump is $90 with a standard deviation of $22. Montes plumbing and Heating Service com

True or False, 1) Consumption is positively related to stock market wealth ...

1) Consumption is positively related to stock market wealth but negatively related to taxes and tax rates.

Macroeconomics policy, explanations to the short-run fluctuation and pilicy...

explanations to the short-run fluctuation and pilicy prescriptions of the schools macroeconomics thought

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd