Readers Question: Does government increases or decrease economic efficiency. Kindly explain as I have tried to look for the reasons. This is an open-ended question, which raises many different issues. To some, on the political right, it is a simple matter of governments bad, markets good. Others are apt to see the government as a …
For those born in the digital age, a paper copy of business listings may seem something of an anachronism. Why leaf through a telephone directory, when you can search online and get more information at the tips of your fingers? Yellow Pages have announced that their paper directory will cease publication in 2019, and it …
An explanation of what happens if there are net outflows of money from a country. Impact on: Real GDP (tends to fall) Employment Exchange rate – exchange rate will fall Balance of Payments – debit on financial account Confidence – if big outflows it can cause a negative spiral of declining confidence. Government debt – …
Readers Question: my question is whether economic instability means high and fluctuated inflation, employment and unsustainable growth or has other definition? Economic instability can take various forms. In recent years, we have witnessed a few examples of this. The main types of instability are: Inflation – The cost-push inflation of the 1970s. In extreme cases, …
Definition of Gross Gross is the total amount exclusive of deductions. For example, gross pay, is the total pay before tax deductions Definition of Net Net is the total amount received after subtracting deductions from the gross amount Difference between gross and net interest rates Gross interest rate is the headline interest advertised by a …
Readers Question: From: How Does the Stock Market Affect the Economy I want to know the basic principle behind the working of share market? What is the profit, company is getting from shares? Does the downfall in share price affect the overall performance of the company? Basic Principles of Stock Market Companies list shares on …
Eurobonds are a way for countries to borrow as one entity. For example, there would just be a single European bond to finance the net debt of all the individual Eurozone member countries. It would mean that the bond would be seen as a safe investment and therefore would have a low interest rate cost. …
Readers Question: What are the effects of increased investment on aggregate demand in the short term and the long term. Investment means capital expenditure (e.g. purchasing machines or building bigger factory) Investment is a component of AD – AD+ C+I+G+X-M. Investment spending takes about 15% of AD; it is not as significant as consumer spending …