This article reviews the concept of the Circular Flow of Income (CFOI), National Income Equilibrium, Paradox of Thrift and The Multiplier Effect.
Posts published in “THE ECONOMY”
This article highlights the area of macroeconomics. Basic concepts of macroeconomics: economic growth, unemployment, inflation and trade balance.
This article introduces the concept of Production Possibility Frontier (PPF) as well as shows the Production Possibility Frontier (PPF) diagrams.
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.
One of the anticompetitive practices that businesses use is the creation of monopolies. A monopoly is when one company dominates the market.
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.
To privatize public companies or not? Let’s explore in details arguments for privatization and arguments against privatization.
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.
Changes in TAXation and low interest rates affect businesses differently. Especially those producing essential and non-essential products.
If domestic interest rates increase, then the domestic currency’s exchange rate is to appreciate against other currencies.
Changes in TAXation and high interest rates affect businesses differently. Especially those producing essential and non-essential products.