This example is from Wikipedia and may be reused under a CC BY-SA license.
Their assumption of an exogenous private savings rate ensures that there is no priceeffect on retained earnings.
The priceeffect valorised particularly mining production, increasing profit margins and the value of sales abroad.
We use active ingredients to isolate the priceeffect.
Enterprise savings are affected by the revenue neutral reduction in the enterprise income tax, but there is no priceeffect in retained earnings.
For a relatively large money stock, the priceeffect of an increase in the money stock is to dominate the liquidity effect.
Thus, the priceeffect will also encourage education and home care.
This drives down the equilibrium money stock to the level where the liquidity effect net of the priceeffect is matched by the seigniorage effect.
The own priceeffect has the expected sign and is significant at 1 per cent showing that households react to changes in the shadow price as we expected.
These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.