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Latest Definitions

constant returns to scale
Constant Returns to Scale
Constant Returns to Scale (CRS) refers to a production or cost structure where increasing all inputs by a certain proportion leads to an equivalent proportionate increase in outputs or costs.
nominal interest rate
Nominal Interest Rate
The nominal interest rate is the stated interest rate without accounting for inflation, representing the rate at which money grows over time.
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.
capital asset pricing model
Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) is a financial model used to estimate the expected return on an investment based on its systematic risk and the overall market conditions.

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Daily Definition

Social Capital /səʊʃəl kæpɪtl/

Social capital refers to the links and bonds people form through friendships and acquaintances. These links can form through friendship groups, i.e. knowing a friend of a friend. Or, they can occur through daily social interactions.

Full Definition
Budget Deficit /‘bʌdʒɪt ‘dɛfɪsɪt/

A budget deficit occurs when the government spends more than it receives through taxation. For example, if it receives $2 trillion in tax receipts, but spends $2.5 trillion on public services – it has a budget deficit of $500 billion

Full Definition
Net Present Value /nɛt ‘prɛznt ‘væljuː/

Net Present Value (NPV) is the total value of future revenues, subtracted against any cash outflows during the same period. In other words, it calculates future streams of income and brings it in line to its present value. At the same time, it also factors in outflows.

Full Definition