Definition of Demand shock

Demand shock

An event that affects the demand for goods in services in the economy.

Demand deposits

Checking accounts that pay no interest and can be withdrawn upon demand.

Demand line of credit

A bank line of credit that enables a customer to borrow on a daily or on-demand basis.

Demand master notes

Short-term securities that are repayable immediately upon the holder's demand.

Hedging demands

demands for securities to hedge particular sources of consumption risk, beyond the usual
mean-variance diversification motivation.

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
buffer stock of cash.

Speculative demand (for money)

The need for cash to take advantage of investment opportunities that may arise.

Supply shock

n event that influences production capacity and costs in an economy.

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.

Aggregate Demand

Total quantity of goods and services demanded.

Aggregate Demand Curve

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.

Demand

An amount desired, in the sense that people are willing and able to pay to obtain this amount. Always associated with a given price.

Demand Deposit

A bank deposit that can be withdrawn on demand, such as a deposit in a checking account.

Demand Management Policy

Fiscal or monetary policy designed to influence aggregate demand for goods and services.

Demand-Pull Inflation

Inflation whose initial cause is excess demand rather than cost increases. See also cost-push inflation.

Excess Demand

A situation in which demand exceeds supply.

Warehouse demand

The demand for a part by an outlying warehouse.

Demand Loan

A loan which must be repaid in full on demand.

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