You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.
I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.
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- I aim to try and simplify economics; as a rough guide, I would aim at an understanding similar to a good British A Level student.
- I am looking to explain economic principles/ideas/ recent developments in economics.
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what to produce is more important in developing economies, as a result of scarcity of what
what the four reasons why GDP may understate or overstate economic
hi! I just want to know what are the effect of increasing interest rate. And also with their possible solutions
(d) Suppose a new dip increases the quantity of potato chips that people want to buy by 20 million bags per week at each price. How the demand and/or supply of chips change? Also, explain how the price and quantity of chips change
relationship between TU,AU&MU
Good day!
I am a CFA Level III candidate and the more I learn the more confusing economics gets. It seems like a giant sham to me. Well, monetary and fiscal policy anyways. The link below is the article I am referencing that you authored. I love it by the way! I was watching CNBC the other day and what stood out was the feds target inflation rate of 2%. In order for this to occur either we need more supply of $ in circulation OR people need to spend more. Supply vs velocity. money supply is always generated via debt. So does this mean debt needs to increase forever?
https://www.economicshelp.org/blog/111/inflation/money-supply-inflation/
This article does well at spelling out my thought process. Especially bullet point 1 about aggregate demand, aggregate supply and the LRAS curve, but the whole thing is very relevant.
To me this seems like a vicious cycle because all the debt the government gets loaned through the Fed, although indirectly, needs to be paid back at some point through interest and principal. Let’s just say the loan was for $90, zero coupon bond, and $100 principal (pretend we are going through a VERY small QE ha ha). The money supply increased by $90 at inception, however, the supply is smaller by $10 once repaid, because $100-$90=$10. So, this debt needs to be constantly rolled over, interest and principal to maintain the current money supply. Brief example below:
– Government debt issued for $90, zero coupon, $100 principal. This will increase money supply, spending, etc.
– Government then uses tax revenues to pay off the $100. However, this would decrease the money supply by $100.
– So, they would roll this over, but not for $90 as the original bond, but the full $100 because that’s the only way to maintain the current money supply.
– This cycle goes on and on and on until this “phantom debt” is sky high, taxes have no choice but to go up to cover this ever increasing debt and they have no choice but to write it off.
Many worry the national debt is a worrisome thing; I am not convinced. If its money they owe the fed then why not just right off rather than having to keep increasing debt and the taxes to pay it off?
ANY FEEDBACK is SUPER appreciated!!
suppose a consumer has the choice between buying apples and pears, but receives no utility from consuming pears. Where would the consumer consume on the budget line?
List the types of market structures with their discussion
Interest rates are also affected by the governed financial markets deepening. If the country is subject to lot of money laundering and black money markets say India , don’t you think impact of Interest rate changed will be considerably lower.
Briefly distinguish between the cardinal utility approach and ordinal utility approach to consumers behaviour. Explain with illustration the law of eventual diminishing marginal utility?
What are the main problems in our economy aside from inflation and unemployment?
Using AD-AS evaluate the cost push
inflation and the effects of the inflation on income, production and unemployment
List European Union countries experiencing price deflation at the moment
What are the factors influencing inflation in an economy?
What are the causes of inflation in your economy?