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consumer credit (G2)<br />Credit granted by banks, finance houses and other financial institutions usually to purchase CONSUMER DURABLES. The volume of this credit can be controlled by altering its price, i.e. by changing interest rates or the minimum size of initial deposits.
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diminishing returns law (D2)<br />The decline in output which occurs as successive units of a variable factor of production are applied to a fixed factor. The most familiar example was the application of increasing amounts of labour to a fixed amount of land with the consequence that the MARGINAL PRODUCT of labour declined. This view of agricultural production was central to much of CLASSICAL ECONOMICS, including RICARDO'S model of the economy. The US economist Henry Charles Carey (1793-1879) was one of the few economic writers of the nineteenth century to argue that in a developing economy cultivation can proceed from the least to the most fertile land bringing about increasing returns.<br /><em>See also:</em> returns to scale <br /><em>Reference</em><br />Carey, H.C. (1848) The Past, The Present and The Future, Philadelphia: Carey & Hart.
bulldog issue (G1)<br />A long-term sterling bond issue, mostly purchased by UK INSTITUTIONAL INVESTORS.
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