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Importance of elasticity in economics
According to John Maynard Keynes, the total demand for money is composed of transactional demand, precautionary demand and speculative demand for money.
discuss the determinant of money demand
money demand will decrease
as interest rates increase, demand for money increases.
Simple answer is that volatility is simply price change. Price changes due to supply and demand so when people trade a stock it affects supply and demand.
Volatility means there are changes of any kind to key factors such as interest rates, demand for products, customer payoffs of loans, availability of deposits, or any other element of banking.
Importance of elasticity in economics
According to John Maynard Keynes, the total demand for money is composed of transactional demand, precautionary demand and speculative demand for money.
VIX is not about volatility. The word "volatility" is used erroneously. Volatility would imply rapidly changing in EITHER direction. People have lost lots of money on account of the improper use of the word. I contacted the CBOE and they even admit the word is used incorrectly. They attribute it to a person 30 years ago who used the word improperly. It is a unidirectional measure of the ratio of S&P500 puts and calls, which is NOT volatility. The VXX is a product of Barclay's Bank and also uses the word "volatility" even though it does not track volatility, thus their product is misleading.Read more: http://www.answers.com/search?q=VIX+is+not+about+volatility.+The+word+"volatility"+is+used+erroneously.+Volatility+would+imply+raplidly+changing+in+EITHER+direction.+People+have+lost+lots+of+money+on+account+of+the+improper+use+of+t#ixzz1naTzgrKq
Stock option volatility is the amount of movement a stock is anticipated to make in a specific time frame. This information is important to investors to enable them to predict if they will make money or not.
discuss the determinant of money demand
The volatility of sugar is 600.00
money demand will decrease
Analysis of demand is a methodology under which we analyze the influences of the determinants of demand on demand itself. It is important because the demand determines the sustainability and expansion of business
as interest rates increase, demand for money increases.
It is important because if a company doesn't understand their product's elasticity of demand, they are screwed!