Business Economic Factors

Interest Rates

This is the price of the cost of borrowing. If a bank lends a business money, the rate of interest charged is the bank's reward for taking the risk.

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Exchange Rates

This is the price which one currency is bought and sold for another.

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Unemployment

The number of people that are out of paid work.

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Inflation

This is the increase in the price of goods and services measured over a set period of time.

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Luxury Goods

Goods for which demand increases more than proportionally as income rises.

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Necessity Goods

Goods for which demand does NOT increase as income rises, but may increase as income falls.

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Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes

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Other cards in this set

This is the price which one currency is bought and sold for another.

Exchange Rates

The number of people that are out of paid work.

This is the increase in the price of goods and services measured over a set period of time.

Goods for which demand increases more than proportionally as income rises.

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