Category Archives: Economics

How would the nation be affected if your credit limts were reduced?

Ted asked: According to the article linked to below, one analyst thinks that the credit industry is poised to reduce the liquidity of the American consumer by 2 trillion dollars through credit line reductions. Has this happened to you? Would … Continue reading

Posted in Economics | Tagged , , , , , , , | 3 Comments

Why is there a depression in the econommy and why?

Edward88 asked: Why is there a depression in the economy? What causes it? I know the very basics. That businesses are doing poorly, thus, there is less money for consumers to spend so that the cycle continues. The money must … Continue reading

Posted in Economics | Tagged , , , , , , | 1 Comment

Economics – Public Finance?

2shar asked: Demand curve for cigarettes is given by Qd = 2000 – 200P Supply curve for cigarettes is given by Qs = 200P , where P is the price per pack. The government now imposes a tax of $2 … Continue reading

Posted in Economics | Tagged , , , , , , | 1 Comment