Thursday, January 19, 2017

Chapter 26 Blog Post

This chapter discusses financial economics. It covers the the investment aspect of economics which is more specifically the investments portion of GDP. While I originally knew how to derive/ isolate the I in the equation of GDP (Y), I'm not too sure how to find the other equations that the book gave us. I know that we will most likely have to have memorized those though, I know that I will definitely have to commit that to my memory in the coming days.

Another thing that this chapter cover was the idea that the laws of supply and demand play a similar role when talking about investments. This to me was very shocking, as I did not think that I would be using a supply and demand chart in a chapter like this. This, however did make the concept easier for me to understand as it is not very complex. From there the chapter then talks about the factors that then affect the equilibrium interest. This was too difficult to comprehend either as this was also very similar to the factors stated in supply and demand. I think that this chapter will not be bad, however the tests always trip me up, so we'll see.

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