Tag Archives | Trade-Off

Trade-Off between Risk and Return | Investment

In this article we will discuss about the trade-off between risk and return of investment. Let us suppose that a person wants to invest his savings in two assets—Treasury bills which are almost risk-free, and a representative group of stocks. He would have to decide how much to invest in each asset. He might, for instance, invest only in Treasury [...]

By Vanshika Ghosh|2016-09-17T15:58:47+05:30September 17, 2016|Investment|Comments Off

Trade-Off between Inflation and Unemployment

In this article we will discuss about trade-off between inflation and unemployment. Phelps pointed out that current inflation depends not only on unemployment but also on inflation expectations. Such dependence is due to the fact that wages and prices are adjusted only infrequently. Consequently, when adjustments are made, they are based on inflation forecasts. Thus, the higher the anticipated rate [...]

By Kirti Shailesh|2016-05-23T06:13:28+05:30May 23, 2016|Inflation|Comments Off