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Government bonds have only become negative in recent years, and we partially explain this by adapting our standard demand-supply diagram. Unlike in a normal market, government bonds are not valued by pric...
Elasticity of demand refers to the sensitivity of demand in relation to price. In essence it measures how much the demand for a good changes in relation to its price. We know for most goods that the deman...
Elasticity is, in general terms, the amount supply or demand will react to a change in another variable such as income or price. It is very important to economists as it will allow them to estimate econom...
Central Banks have introduced Quantitative Easing (QE) as an additional mechanism to stimulate inflation in the economy.The two mechanisms that drive inflation (theoretically as this has not been proven a...
A market failure is when an allocation of resources has a negative effect on a third party that is outside the market mechanism. The third party effects are negative externalities. Increasing transport us...
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