New answers tagged


We find that funds hold stocks that outperform the market by 1.3 percent per year, but their net returns underperform by one percent. Source. Seems they don't work very well.


Does savings always equal investment? If we are talking about national accounts then yes. Output of closed economy is given by: $$Y = C+I+G \tag{1} $$ Private saving $S_p$ is by definition is disposable that is not consumed (see further explanation in Blanchard et al. Macroeconomics an European Perspective pp 55) so: $$S_p= Y- T-C \tag{2}$$ Public saving $...


$π = φ^{(σ−1)}*\frac{f_E+f_D}{φ^{(σ−1)}*(1+τ^{(1-σ)})}+φ^{(σ−1)}\frac{f_E+f_D}{φ^{(σ−1)}*(1+τ^{(1-σ)})}-f_E-2f_D$ $π = 2\frac{f_E+f_D}{(1+τ^{(1-σ)})}-f_E-2f_D$ $(1+τ^{(1-σ)})π = 2(f_E+f_D)-(1+τ^{(1-σ)})f_E-2(1+τ^{(1-σ)})f_D$ $(1+τ^{(1-σ)})π = 2f_E+2f_D-f_E-τ^{(1-σ)}f_E-2f_D-2τ^{(1-σ)}f_D$ $(1+τ^{(1-σ)})π = f_E-τ^{(1-σ)}f_E-2τ^{(1-σ)}f_D$ $(1+τ^{(1-σ)})π = ...

Top 50 recent answers are included