Category Archives: Economics

Economics Lessons! This is just a sample. Our Economics lessons combine reading, videos, infographics, and quizzes to ensure concept mastery.

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Monetary Policy

The government has two main ways it tries to influence the economy – through Fiscal Policy and Monetary Policy. Fiscal policy is the more direct approach, where the government levies taxes and subsidies to try to balance its budget while encouraging growth, while monetary policy is less direct – tweaking interest rates and modifying the Read More…

Inflation

Inflation: how much less a dollar is worth next year compared to today. Most consumers hate inflation – it erodes your savings, and eats away at the real benefits you get from increasing income. However, inflation plays a necessary role in the economy, and without it much of the economy would quickly fall apart. Inflation Read More…

Government Impact on the Economy

As a society with a market-based economy, the government has three broad mandates: Ensure the common defense Promote economic growth Strive to maintain a just society On the face, only one of these implies direct intervention in the economy, but all three are interconnected with the economy as a whole. This means every action taken Read More…

Time Value of Money

The “Time Value of Money” is one of the most important concepts in economics, investing, and business. For individuals, this determines how much you save and spend. For businesses, it determines how quickly they try to expand. For investors, it decides the mix of a portfolio. What is the Time Value of Money? “Time is Read More…

Interest Rates

What Are Interest Rates? Interest rates are growth rates – it is a percentage that is used to calculate how much a loan or investment grows over time. Interest rates are most commonly associated with borrowing money, like a homeowner taking out a mortgage or a government selling a bond. The interest rate is how Read More…