Question from the audience: Identify and explain economic variables that may be positively affected by the economic slowdown. A recession is a time in which the economy grows at a negative rate. It’s a time of rising unemployment, lower salaries, and increased government debt. It usually results in financial costs. Companies that provide low-cost entertainment. […]
Who Benefits From A Global Recession? Read More »
Unexpected inflation hurts lenders since the money they are paid back has less purchasing power than the money they lent out. Unexpected inflation benefits borrowers since the money they repay is worth less than the money they borrowed. Inflation favours whom? Inflation is defined as an increase in the price of goods and services that
Who Benefits From Unexpected Inflation? Read More »
The contract’s value is determined by the value of the underlying asset. The stock price is multiplied by the number of units in the contract to compute futures. To trade futures, investors must pay a margin, which is typically 10% of the contract’s value but can be as high as 20%. If the market swings
How Are Futures Calculated? Read More »
Applications. The debt-to-GDP ratio is a measure of an economy’s financial leverage. The government debt-to-GDP ratio should be less than 60%, according to one of the Euro convergence criteria. What country’s debt to GDP ratio is the highest? Venezuela has the highest debt-to-GDP ratio in the world as of December 2020, by a wide margin.
What Is The United States Debt To GDP Ratio? Read More »
This can be used to the quantity equation: money supply x velocity of money x real GDP. Inflation rate + growth rate of output = growth rate of the money supply + growth rate of the velocity of money. We took use of the fact that the price level’s growth rate is, by definition, the
How To Calculate Inflation Using Quantity Theory Of Money? Read More »
If you’re wanting to invest for the future, whether it’s five, ten, or forty years away, now is as good a time as any to do it. With a long-term time horizon, waiting for a stock pullback isn’t going to change the needle significantly. How big of a difference would a ten percent variation in
Should I Invest Now Or Wait For Recession? Read More »
Recession-proof your life: Entrepreneurs share their tips for prospering in tough times. In a downturn, how do you make money? During a recession, you might be tempted to sell all of your investments, but experts advise against doing so. When the rest of the economy is fragile, there are usually a few sectors that continue
How To Prosper In A Recession? Read More »
A recession is a period of economic contraction during which businesses experience lower demand and lose money. Companies begin laying off people in order to decrease costs and halt losses, resulting in rising unemployment rates. Re-employing individuals in new positions is a time-consuming and flexible process that faces certain specific problems due to the nature
What Happens With A Recession? Read More »
A recession is a period of falling economic performance that lasts several months and affects the entire economy. Businesses, investors, and government officials monitor a variety of economic indicators that can help anticipate or confirm the onset of recessions, but the National Bureau of Economic Research (NBER) is the one who officially declares them. To
What’s Economic Recession? Read More »
During a recession, you might be tempted to sell all of your investments, but experts advise against doing so. When the rest of the economy is fragile, there are usually a few sectors that continue to grow and provide investors with consistent returns. Consider investing in the healthcare, utilities, and consumer goods sectors if you
How To Recession Proof Your Portfolio? Read More »
