Why are the economic analysis and in-depth understanding of economic factors is important for effective decision making in capital market? Investors always try to formulate best possible portfolio by investing in the capital market for the purpose of getting capital gain and dividend (cash or stock). It is not an easy task to choose best investment alternatives because the … [Read more...] about Factors are Important for Efficient Decision Making
Economics
Determination of Consumption Multiplier
Determination of Consumption Multiplier Marginal Propensity to Consume is the rate of change in consumption for the change in income. In macroeconomics consumption multiplier (CM) is a very old concept but now this is neglected due to more precise National Income Multiplier (NIM). Consumption multiplier helps us to understand other multipliers. It is very simple but it … [Read more...] about Determination of Consumption Multiplier
Circular Flow of Goods and Services
Do you know what is the circular flow of goods and services? If you do not know then this article may help you to understand it clearly. Different participants involve with the exchange process in an economy and each of the participants is interdependent with one another. There are four major participants in an economy, these are: Business sector Households sector … [Read more...] about Circular Flow of Goods and Services