What does the Dow Jones Industrial Average measure?

July 7, 2024 No Comments

A: The Dow Jones Industrial Average (DJIA) is the second-oldest and best-known stock market index. Owned by Dow Jones & Company, it measures the daily price movements of 30 large American companies on the Nasdaq and the New York Stock Exchange. It is widely viewed

What impact does government regulation have on the financial services sector?

July 7, 2024 No Comments

A: Government regulation affects the financial services industry in many ways, but the specific impact depends on the nature of the regulation. Increased regulation typically means a higher workload for people in financial services, because it takes time and effort to adapt business practices that

What does the Fisher Effect say about nominal interest rates?

July 7, 2024 No Comments

A: The Fisher effect is a theory first proposed by Irving Fisher. It states that real interest rates are independent of changes in the monetary base. Fisher basically argued that the real interest rate is equal to the nominal interest rate minus the inflation rate.

What impact does industrialization have on wages?

July 7, 2024 No Comments

A: Industrialization is the transformation of a society from an agrarian economy to an industrial one. Industrialization has enormously positive impacts on wages, productivity, wealth generation, social mobility and standard of living. During industrialization, all wages tend to rise, though the wages of some rise

What are the nations with the lowest PPP (purchasing power parity) with respect to the US?

July 7, 2024 No Comments

A: Purchasing power parity (PPP) is one of several economic indicators used to compare how much goods cost from country to country. If the exchange rate between two countries is in proper equilibrium, then those countries should have PPP. Once the exchange rate is taken

What are the requirements for being a Public Limited Company?

July 7, 2024 No Comments

A: The requirements for an entity to be considered a public limited company (PLC) include registration requirements, establishing directors and offering shares. A Public Limited Company A PLC is a form of publicly held company under U.K. law, the Republic of Ireland, and some Commonwealth

What are the three major economic components necessary for stagflation to occur?

July 7, 2024 No Comments

A: Stagflation is most commonly referred to as the simultaneous experience of three separate negative economic phenomena: rising inflation, rising unemployment and a declining demand for goods and services. Despite several examples of stagflating Western economies during the 19th and 20th centuries, many economists did

What are these points that the Dow is always gaining or losing?

July 7, 2024 No Comments

A: The Dow is a list, or index, of companies considered to be good indicators of the market’s strength. Simply put, these companies are a barometer of the market: when they do well, the economy is doing well, and vice versa. So the Dow takes

What currency is affected by the interest rate decisions of the Bank of England (BoE)?

July 7, 2024 No Comments

A: The Bank of England (BoE) is responsible for the interest rate decisions that affect the economy of Great Britain. As with most central banks, the BoE uses interest rates, among other methods, to increase or decrease the supply of available bank loans needed for

What determines labor productivity?

July 7, 2024 No Comments

A: Labor productivity is the rate of output per worker within a specified unit of time. Economists and statisticians track labor productivity to determine the relative strength of an economy. For any period of time, the level of productivity is determined by two broad factors:

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