Theory of Asset Demand

A firm or individual's decision for allocating its wealth amongst assets is known as the Theory of Asset Demand or Portfolio-Choice Theory.Demand For An Asset Depends On Four Factors1. Wealth As wealth increases, the demand for financial assets also increases.There are two types of financial assets:Necessity assets: For…
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The Phillips Curve

The Phillips Curve showed that there was a trade-off between the inflation rate and the unemployment rate. Alban Phillips based the original work on data from the UK from 1861-1957. The result was an inverse relationship between unemployment and the rate of inflation, meaning that an increase of one led to the decrease of the other. The trade-off…
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How To Create Your Own Free Vanity URL

What is a Vanity URL? A vanity URL is a customized web address that includes the name of your business for marketing, branding, and search engine optimization (SEO) benefits. They are usually short and descriptive, and can easily be recognized as part of your business's brandingA vanity URL is easier to remember, easier to share and easier…
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Durable & Non-Durable Goods

Durable goods are those goods that don't wear out quickly and last over a long period. Examples of durable goods include land, cars, and appliances. While non-durable goods or soft goods are those goods that have a short life cycle. They are used up all at once or have a lifespan of fewer than three years. For example light bulbs, paper products,…
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Harrod Domar Model

The Harrod Domar model shows the importance of saving and investment in a developing economy. The model was developed independently by Roy F. Harrod in 1939. The growth of an economy is positively related to its savings ratio and negatively related to the capital-output ratio. It suggests that there is no natural reason for an economy to have…
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