Marginal Propensity To Consume (MPC)

Marginal Propensity To Consume (MPC)

The marginal propensity to consume (MPC) is a metric used in economics to quantify induced consumption. It measures how responsive consumption in a given economy…
Keynesian Economics Theory

Keynesian Economics Theory

The macroeconomic economic theory of total expenditure in the economy and its impact on productivity, wages, and inflation is known as Keynesian economics (/ˈkeɪnziən/ KAYN-zee-ən;…
Monetarist Theory

Monetarist Theory

Monetarist theory, also known as monetarism, is an economic concept that claims that changes in the money supply are the most important determinants of economic…
Price Elasticity of Supply

Price Elasticity of Supply

Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. The price elasticity of supply…
Depreciation Recapture

Depreciation Recapture

The Internal Revenue Service (IRS) in the United States uses depreciation recapture to raise taxes on the sale of depreciated land. If the sale price…
Nasdaq Capital Market

Nasdaq Capital Market

The NASDAQ is a stock exchange headquartered in New York that focuses on technology firms. The Nasdaq capital market is one of the Nasdaq Composite…
Efficient Frontier

Efficient Frontier

The efficient frontier, also known as the portfolio frontier in modern portfolio theory, is a collection of ideal or optimal portfolios that are supposed to…
Equity-Efficiency Tradeoff

Equity-Efficiency Tradeoff

When optimizing the market’s efficient productivity results in less egalitarian wealth distribution, an equity-efficiency tradeoff occurs. If such a trade-off occurs, economists or public policymakers…
Moving Average Convergence Divergence (MACD)

Moving Average Convergence Divergence (MACD)

Moving average convergence divergence (MACD) is a trend-following momentum indicator that depicts the relationship between two market-moving averages. Despite the fact that it is an…
Simple Moving Average (SMA)

Simple Moving Average (SMA)

Traders use the simple moving average (SMA) as the most common technical analysis method. The SMA divides the number of periods in a selected range…
Exponential Moving Average (EMA)

Exponential Moving Average (EMA)

An exponential moving average (EMA), also referred to as an exponentially weighted moving average (EWMA), is a type of moving average (MA) that gives the…
Arc Elasticity

Arc Elasticity

Arc elasticity is the elasticity of one variable with respect to another between two given points. In mathematics and economics, the arc elasticity is the…
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