Finance is my absolute passion!
Finance involves the managements of funds econpassing varous aspects such as savings, investments, cashflow, financial planning, budgetting, risk managment, securities and other. At the core of finance, is its tremendous impact it has on the economy, shaping economic decisons and outcomes.
These economic decisons and outcomes can be measured and predicted by many macroeconomic equations like:
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The Gross Domestic Product
The Gross Domestic Product is used to measure the total value of goods and services produced in a country. Mathematcally, it could be expressed as:
C+I+G+(X-M)
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Econometric Model
Econometric models are used to measure the causuative effect ore correlation between variables. Mathematcally, it could be expressed as:
Y= B0+B1X+U
Where Y representes the dependent variables and other variables are the independent variables
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Current Account Balance
Current Account Balance are used to measure net transactions of a nation to the rest of the world. Mathematcally, it could be expressed as: CAB=(X-M) + NI +NT Where (X-M) representes net exports while NI and NCT represents Net Income from Abroad and Net Current Transfers