The process by which deficit spending units obtain funds from financial intermediaries who, in turn, them from ultimate surplus spending units.
Taxes, which are charged on goods produced, imported or exported: Excise and Customs duties.
Industry life cycle
A conceptual model of the different stages of an industry’s development.
1. Development stage: New product, high investment needs, losses;
2. Growth stage: Consumer acceptance, expanding sales, high profitability, ease of entry;
3. Maturity stage: Sales growth slows, excess capacity, prices and profits decline – key period for merger strategy;
4. Decline stage: Substitute products emerge, sales growth declines, pressure for mergers to survive.
A premium for anticipated inflation that investors require in addition to the pure rate of interest.
A percentage rate of change in the price level.
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