This effectively passed on the risk to the next investor. ... This along with the fact that an investor could purchase a CDS, credit default swap, an insurance policy against the mortgage defaulting within the CDO, made for a win-win situation with investors. These investors were unaware of the true risk behind each of these CDOs and unfortunately at the same time they were leveraging higher than ever. ... If consumer confidence isn't present, there is a lack in demand, if there is a lack in a demand there is a decrease in investor confidence. Investors aren't willing to hire more em...

• Word Count: 2201
• Approx Pages: 9
• Has Bibliography
• Grade Level: Undergraduate

One factor that can cause economic growth is through investment, for example, by increasing the quantity of natural resources a country has, or in other words, by increasing their capital stock. ... In addition, technological improvements add to economic growth in the same way that increases in the capital stock do: by increasing worker productivity. ... Finally, Lower interest rates in the short term can lead to more economic growth as lower interest rates would make borrowing less expensive and will encourage firms to invest and consumers to spend, increasing the confidence of the labor forc...

• Word Count: 1462
• Approx Pages: 6
• Grade Level: Undergraduate

Executive Summary The Australian economy is widely regarded as an influential force in the market; in fact, with a GPD of $1.488 trillion (US) as of 2013,1 it is the 12th largest in the world. Australia currently operates as an open, export-oriented, free market economy, a significant contributor to...

• Word Count: 2267
• Approx Pages: 9
• Has Bibliography
• Grade Level: Undergraduate

This happened right after the Stock Market crash in 1929 where millions of dollars were lost and countless investors lost all of their money. ... However this plan quickly failed in that because all of the money that the United States was investing was borrowed so this led to the monies that they lending to the other nations to dry up. ...

• Word Count: 994
• Approx Pages: 4
• Has Bibliography
• Grade Level: Undergraduate

In the last few years there has been a resurgence of the Keynesian school of though since the collapse of the stock market in 2008. ... This theory focuses on the idea that as the levels of consumption increase, more money enters circulation and the individual has more money to invest back into the economy. ...

• Word Count: 1814
• Approx Pages: 7
• Grade Level: Undergraduate