This article defines investment and answers why businesses invest. It also explains Marginal Efficiency of Capital (MEC) and the determinants of planned investment.
Posts published in “MACROECONOMICS”
This article defines consumption and saving as well as introduces The Average Propensity to Consume (APC) and The Marginal Propensity to Consume (MPC).
This article is about the definition of Aggregate Supply (AS), the Aggregate Supply (AS) curve and shifts in the Aggregate Supply (AS) curve.
This article is about the definition of Aggregate Demand (AD), the Aggregate Demand (AD) curve and shifts in the Aggregate Demand (AD) curve.
This article includes introduction to economic growth. It explains different ways of measuring economic growth and causes of growth.
This article is the debate whether a country such as Poland, Hungary or Sweden should join the common currency or not.
This article reviews the concept of the Circular Flow of Income (CFOI), National Income Equilibrium, Paradox of Thrift and The Multiplier Effect.
This article highlights the area of macroeconomics. Basic concepts of macroeconomics: economic growth, unemployment, inflation and trade balance.
The government can slow down economic growth by decreasing its own government spending, through higher TAXes and increasing interest rates.
Government intervention may either support business activity to speed up economic growth or restrain it to slow down the economy.
It is not very difficult to calculate exchange rates. Exporters and importers are interested in calculating exchange rates.
The government of any country will most likely formulate two different types of policies - domestic policy and foreign policy.
Deregulation means lifting various restrictions that prevent competition between businesses. There are many ways to conduct deregulation.
Spending on training and education is always regarded as important investment in the business organization’s most valuable asset - people.
Privatization is transferring ownership of the business from public sector to private sector. Selling off public corporations to private investors.
If domestic interest rates decrease, then the domestic currency’s exchange rate is to depreciate against other currencies.