Economics
Calculate the Forward Rate in Each Currency
Spot market currencies are exchanged for immediate delivery in the forward rate market, whereas contracts are made to sell or buy currencies for future delivery. For example, when a company in the U.S. buys goods from England valued in British…
Movements Along and Shifts in Aggregate Demand and Supply Curves
Aggregate demand (AD) and aggregate supply (AS) curves address economic issues such as expansions and contractions of the economy, causes of inflation, and changes in unemployment levels. Movements along these curves are caused by price level variations, while shifts of…
Impact of Geopolitical Risk on Investment
The degree to which investors take geopolitical risk into account when making decisions will greatly depend on their investment goals and risk appetite. While geopolitical risk may be welcomed by certain investors while it may also be shunned by others…
Tools of Geopolitics
Geopolitical tools refer to methods used by geopolitical actors to strengthen their interests to others. These tools ultimately result in geopolitical risk. Tools of geopolitics may be separated into: i. National Security Tools Tools for national security are those that…
Geopolitics and Globalization
Globalization is the interaction and integration of individuals, organizations, and governments on a global scale. It is characterized by the cross-border movement of goods, information, employment, and culture. However, recently there has been a growth of nationalism, thanks to which…
Compare Nominal and Real GDP and Calculate and Interpret the GDP Deflator
It is economically healthy to exclude the effect of general price changes when calculating the GDP. This is because higher (lower) income caused by inflation does not indicate a higher (lower) level of economic activity. Real GDP Economists describe real GDP…
Short-run Macroeconomic Equilibrium Above or Below Full Employment
Short-run macroeconomic equilibrium only occurs when the amount of real GDP demand equals the amount of GDP supply. On a graph, this happens at the point where the AD curve intersects the short-run average supply curve, exactly on the long-run…
Functions and Definitions of Money
Definitions of Money According to Growther, money refers to anything that is generally accepted as a means of exchange. What’s more, it is that which at the same time acts as a measure and store of value. John Maynard Keynes…
Perfect Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly
Market structure can be defined as the characteristics of a market, which can either be competitive or organizational. Moreover, market structure outlines the nature of the competition and the pricing procedure in a market. Therefore, it describes the number of…
