macroeconomics Archives - EU Seguros
Tax Multiplier, MPS and MPC

Tax Multiplier, MPS and MPC

The Multiplier Effect, MPC and MPS Let’s say I give you $1,000. This is 100%. Out of this $1,000 you save 20% and use the remaining to buy stuff. This means that the Marginal Propensity to Save is 20%, or $200, and the Marginal Propensity to Consume is 80% or...
What is Financial Contagion?

What is Financial Contagion?

What is A Financial Contagion? With the recent downfall of the Evergrande Groups, this expression has been heard on a recurring basis. So what does this mean? Contagion is the propagation, usually associated with a disease – a negative situation that starts...
What Is The Balance Of Payments?

What Is The Balance Of Payments?

What is the Balance Of Payments? In Macro Economics, Economists measure inflows and outflows of money into and out of the Country. This flow is called the Balance of Payments. “Balance” because the inflow balances with the outflow. The BOP has four main...
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