Macroeconomics

The branch of economics that looks at the economy as a whole. It looks at factors which affect the wider economy rather than individuals. Examples include inflation, trade, unemployment, and economic growth.

real interest rate

Real Interest Rate

Real interest rates are the nominal interest rates adjusted for inflation, representing the true return on an investment after accounting for changes in purchasing power.

crowding out effect

Crowding Out Effect

The crowding out effect refers to the reduction in private sector investment caused by increased government borrowing and spending, leading to higher interest rates and potential limitations on economic growth.

Net exports

Net Exports

Net exports represent the difference between a country’s total exports and imports of goods and services, reflecting its trade surplus or deficit and influencing economic growth and currency exchange rates.

expansionary monetary policy

Expansionary Monetary Policy

Expansionary monetary policy is an economic approach where central banks increase the money supply, lower interest rates, and employ other measures to stimulate economic growth and increase aggregate demand.