The Web Tycoon's blog » new modules http://the-web-tycoon.com/blog Internet is like a golmine, you just have to substract it. Fri, 23 Jul 2010 01:59:17 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 The Budget Constraint of Consumers, New Release about Economy and Business http://the-web-tycoon.com/blog/2009/08/the-budget-constraint-of-consumers-new-release-about-economy-and-business/ http://the-web-tycoon.com/blog/2009/08/the-budget-constraint-of-consumers-new-release-about-economy-and-business/#comments Mon, 03 Aug 2009 00:19:42 +0000 The-Web-Tycoon http://the-web-tycoon.com/blog/?p=136
  • New Module on Economy And Business: The Interest Rate
  • Economy and Business, new block in The Web Tycoon.
  • Obama is cutting expenses, the budget of 2011 will be up to $3870Bn
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    The Budget Constraint of Consumers, New Release about Economy and Business

    consumer full2 The Budget Constraint of Consumers, New Release about Economy and Business

    This is my first module of microeconomy, I began with the budget constraint because explains the effects of the stimulus package and is a introduction to the consumer behavior theory. In effect, if people has more money will consume more,but it must be drawn on a graph to understand  the effect on the consumption of  this extra money.

    Depending on the preferences of people, an increase of the budget will have different effects. If there isn’t a better consumption choice, consumption will remain equal. Consumers want something more useful  for them (and affordable)  to change their shopping habits.

    A companies can use the budget constraint to determine what will happen after a change of prices or a new tax on consumption, and make the correct decision to increase their profit. If a company want to sell more,for example, may have to decrease prices, but an incorrect discount will not give the best profit.All this is explained with graphs in the consumer behavior theory.

    Check This Out!

    Other important issue: holidays. I will be the whole August on holidays, a However I know you want more updates and to disappoint my readers.I have a lot more stuff, but I will give priority to a  new update in The Web Tycoon and I’ll post it here when i finish it. Maybe  I’m thinking to begin the block of Investment Through Internet with something about Forex or Stock Markets.

    The Budget Constraint of Consumers, New Release about Economy and Business

    Related posts:

    1. New Module on Economy And Business: The Interest Rate
    2. Economy and Business, new block in The Web Tycoon.
    3. Obama is cutting expenses, the budget of 2011 will be up to $3870Bn

    ]]>     http://the-web-tycoon.com/blog/2009/08/the-budget-constraint-of-consumers-new-release-about-economy-and-business/feed/ 13     New Module on Economy And Business: The Interest Rate http://the-web-tycoon.com/blog/2009/07/new-module-on-economy-and-business-the-interest-rate/ http://the-web-tycoon.com/blog/2009/07/new-module-on-economy-and-business-the-interest-rate/#comments Sat, 18 Jul 2009 01:20:42 +0000 The-Web-Tycoon http://the-web-tycoon.com/blog/?p=108
  • The Federal Reserve Increased the Discount Interest Rate
  • The European Interest rate is likely to continue low in 2010
  • The Federal Reserve is optimistic about the economy but will keep interest rates steady
    • ]]>
    New Module on Economy And Business: The Interest Rate

    This module is the second in the block economy and business,  and explains how interest rate is changed to control the economy. I explain how does it work  in the United States, and also in how the same thing is done in The European Union.

    federal reserve building3 New Module on Economy And Business: The Interest Rate

    Building of the Federal Reserve Bank of New York,were the US interest rate is 'manipulated'.

    The Interest rate is the  price of money  and is a powerful tool to change the liquidity in a economy. In other words, depending on the rate, there will be a lot of investment or nothing. Because of the financial crisis, the fed funds rate was set to 0% since December 2008 to boost the economy. This means that there isn’t more ammunition with the interest rates, and many economists predicted a disaster because this stimulus wouldn’t be enough.

    Fortunately for us, what these economists did not think about, is the effect of the fiscal policy. When taxes decreased in the US, caused the same effect as a cut the interestrate,  and gave a very desired and needed stimulus to the economy. The problem with the fiscal policy is that the government loses a lot of money if wants to stimulate the economy lowering taxes. And in the other hand, raising taxes is a very unpopular measure.

    Check the module  Out

    New Module on Economy And Business: The Interest Rate

    Related posts:

    1. The Federal Reserve Increased the Discount Interest Rate
    2. The European Interest rate is likely to continue low in 2010
    3. The Federal Reserve is optimistic about the economy but will keep interest rates steady

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