Archive for the ‘Uncategorized’ Category
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Spending multiplier Defined
Tuesday, January 29th, 2008
The spending multiplier makes reference to a concept whereby a rise in spending leads to a higher nationalized income. Or the increased demand of a product or service increases the production of that product or service.
In employment, people work harder to produce these items as a means of having a greater chance of having […] -
Notional Amount Defined
Wednesday, January 9th, 2008
A notional amount is the face value that is used to determine payments for a product or service. This is not always the amount of money that is exchanged through sales and purchases.
An example of this is the exchange of bonds whereby a buyer pays for the principal cost, but does not get back […] -
Income Defined
Wednesday, December 19th, 2007
Income is literally the receipt of services and goods received by individuals. It does not include by rights the money earned or cash given to them.
This takes into account varied areas and different industries. For example the growth of grain, whether it has been sold or not is considered income in the form […] -
How is Inflation Measured?
Sunday, December 2nd, 2007
Inflation is measured by using a calculation for the change rate of an index price. In fact, it can be applied to varied price indices.
There are eight indices that can be measured. Consumer price indices offer prices of consumer goods. Cost of living indices provide real income values. Producer price indices […] -
How is Inflation Controlled?
Saturday, November 24th, 2007
Inflation is controlled by varied methods. These can range from interest rate setting to slowing the money supplied to consumers.
Most economists and banks will prefer to reset interest rates to counteract inflation. However, in the past it was not uncommon for countries to flood their markets with their own money. This worked […] -
How are Stock Market Indexes Weighted?
Wednesday, November 7th, 2007
Stock market indexes are weighted by the movement of currencies and the resulting value of a stock. Prices are set in accordance with these changes.
These changes can be weighed in size of a given company or even the influence of shares. However, with shares, the total number of shares is weighed against the […] -
Mortgage: How much can you afford to barrow?
Monday, November 5th, 2007
When looking for a mortgage loan, you need to first find out how much you can afford in order to save both time and stress. There are several factors when finding out how much you can afford and the first thing you should do is calculate your total monthly income. This can include not only […]
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Export and Free Trade – Pros and Cons
Saturday, October 27th, 2007
There are pros and cons to the concept of export and free trade.
In theory, free trade allows countries to produce commodities at their lowest price levels and trade freely by using export to other countries without the competition of import and export duties and other charges and fees associated with such trade. Ideally there […] -
Value Theory in Classical Economics Defined
Monday, October 22nd, 2007
The value theory in classical economics was developed to research and calculate the dynamics of economics, including the price or value of a service or product. These are used to show the differences between the natural and current market prices.
Market prices are subject to fluctuating changes and considered to be abstract or difficult to […] -
Interest only Mortgage loans
Tuesday, October 9th, 2007
An interest only mortgage is an option available to both fixed rate loans and adjustable rate loans. They are usually found in terms of three, five, seven, or ten years, and can significantly lower your monthly payment for that period of time. The downside to this however is that when you reach the end of […]