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Katona effect (E2)<br />The effect of creeping inflation on saving. Katona argued that in such inflationary times there would still be expectations of rising real incomes so individuals would continue to invest in fixed interest securities: the rate of inflation would be sufficiently low for money still to be regarded as 'safe'. In times of runaway inflation, there would be scare buying and hoarding of goods.<br /><em>Reference</em><br />Katona, G. (1960) The Powerful Consumer: Psychological Studies of the American Economy, ch. 12, New York: McGrawHilL

<strong>SMART Grant</strong> – Science and Mathematics Access to Retain Talent, a new federal grant available as of July 1, 2006. Eligibility for this grant is based on science and math curriculum and academic performance as well as financial need. May also be referred to as the National SMART Grant Program.

<strong>HEA</strong> – the Higher Education Act of 1965, as amended, which created the federal student aid programs.

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