EconoTerms M

Macroeconomics
The part of economics dealing with the large-scale. For example, the gross national product, international markets, and total employment would fall under macroeconomics.

Microeconomics
The part of economics dealing with the small-scale. For example, the growth of one industry or the workings of a single market would fall under microeconomics.

Monetarism
The belief that the economy can be, to a large extent, controlled by its money supply. The economist Milton Friedman is well known for this idea.
As an example, here is how a monetarist might view the problem of inflation (excessive prices for goods): inflation is caused by an oversupply of money on the market, leading to a general decline in its value. Therefore, if the government restricts the amount of money in circulation (for instance, by selling bonds, thereby returning more money to the government), inflation can be combated.

Monopoly
A situation in which there is only one seller of something. This is usually bad for consumers, because the seller can set very high prices if demand is high enough.

Monopsony
A situation in which there is only one buyer of something. The buyer sets the price, as long as it is low enough that businesses can afford to continue producing the product.

Mutual fund
A company that uses the money of many different investors to make investments. This allows individuals to invest money in stocks even if they have very little to invest, because their funds are combined with those of many other investors.

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