Economics
In this category you will find information on economics, both in terms of macroeconomics and microeconomics. Economics is an important basis for the understanding of financial markets and financial instruments.
The injection multiplicator is a concept in the economic circulation diagram. The injection multiplier is a phenomenon in economics that means that an injection into the economy will make a higher con ...
Interest rate parity implies that the interest rate will be the same in two different countries, adjusted for expected exchange rate change and the difference in risk. ...
Assumptions about interest rate sensitivity affects the type of policies that are preferred in a country, fiscal policy and monetary policy. ...
The intertemporal substitution effect means that we postpones the consumption in time. The intertemporal substitution effect means that if prices are high
today, we choose to wait and consume at a l ...
Keynesian fiscal policy refers to the theories developed by John Maynad Keynes during the mid-1930s. Keynes argued that a market economy never can reach full employment, the unemployment rate was due ...
John Maynard Keynes questioned the quantity theory of money and said that it not is certain that the price level is directly dependent on the money supply. ...
The Laffer curve is a graph showing the relationship between tax revenue and taxation. ...
Long term aggregate supply are described in an AD-AS model by a LAS-curve. The LAS curve is a straight line with a completely vertical slope describing the
relationship between supply and price leve ...
The Lorentz curve is a model that shows how the income is distributed in a country. The Lorentz curve is plotted on a graph with two axes. ...
Macro marginal tax is a concept in the economic circulation diagram. Macro marginal tax is the percentage of an income that goes to taxes. ...