Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
intertemporal substitution irreversible investments labor adjustment costs bunch or cluster in time collateral collateral shock equity | the costs of shifting workers from declining sectors of the economy to growing sectors. investments that cannot be easily moved, adjusted, or reversed if conditions change. the value of the asset minus the debt, E = V − D. something of value that by agreement becomes the property of the lender if the borrower defaults. a reduction in the value of collateral. Collateral shocks make borrowing and lending more difficult. is the tendency for economic activities to be coordinated at common points in time. the allocation of consumption, work, and leisure across time to maximize well-being. |