Special Report on
Accounting and Finance Revision Notes
Accounting and Finance Revision Notes - Trends
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Very often, a change in the price of one product leads to a change in the demand for another, economists call this the cross-price effect and this is the focus of this chapter. Cross price elasticity (CPed) measures the responsiveness of demand for good X following a change in the price of good Y (a related good). We are mainly concerned here with the effect that changes in relative prices within a market have on the pattern of demand. With cross price elasticity we make an important distinction between substitute products and complementary goods and services Substitutes: With substitute goods such as brands of cereal or ...
How in the world is nominal income growth expected to finance a drop in consumer debt leverage if the government supports a smaller deficit? TARP costs less and tax receipt growth is beating expectations. But that’s all it is, beating expectations. This only proves the endogeneity of the deficit: the sole reason that the private sector is producing stronger-than-expected growth in tax receipts is BECAUSE the government ran large deficits. Put it this way: as long as the US is running current deficits, then a shrinking government deficit will, by definition, squeeze liquidity from the ... Read More
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ACCOUNTING AND FINANCE REVISION NOTES
JCCC Board of Trustees Meeting 4-15-09
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