Autonomous Consumption – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Autonomous Consumption?Autonomous consumption refers to the lowest level of consumption that must occur even in the absence of disposable income for consumers.Why is Autonomous Consumption Important?Autonomous consumption is understood as consumption that...

Law of 29 (Marketing) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is the Law of 29?This law is based on the assumption that a marketer or a company must send promotional messages to a client 29 times if they want the customer to purchase their product.How does the Law of 29 Work?The law of 29 is often used by marketers to...

Deficit Hawk – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Deficit Hawk?Deficit hawk is a slang term that advocates a reduction in government spending.Why is Understanding a Deficit Hawk Important?Deficit Hawk is often used in a political context to tell the government to limit the federal budget deficit or keep it...

Assumable Mortgage – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Assumable Mortgage?How Does an Assumable Mortgage Work?Even More of an Explanation of an Assumable Mortgage What is an Assumable Mortgage?An assumable mortgage is a method of financing that allows the transfer of an existing...

Content Tags – Explained

by TheBusinessProfessor | Feb 23, 2025 | SEO, Social Media, Direct Marketing

Update Table of Contents What are Content Tags?How are Content Tags Used?Why are Content Tags Important?Academic Research on Content Tags What are Content Tags?A content tag is a term or keyword attached to web content that identifies characteristics of the content....

Disequilibrium (Economics) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Disequilibrium?Disequilibrium is when the market fails to find an equilibrium point – which is the state of a market when there are no shortages or surpluses of supply and demand at a market-clearing price (this is also referred to as equilibrium...

Mosaic Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is the Mosaic Theory?Security analysts in the finance world use the mosaic theory. The mosaic theory is an approach where analysts piece together information to arrive at a conclusion concerning a company. The Mosaic theory is used to measure the economic...

Correspondent & Respondent Bank – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Correspondent Bank?How Does a Correspondent Bank Work?Example of a Correspondent Bank Transaction  What is a Correspondent Bank?Correspondent banking is an agreement between two banks whereby one bank (correspondent bank) carries on...

Paradox of Thrift – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Paradox Of Thrift?The paradox of thrift, also known as the “paradox of savings”, is an economic theory stating that individual savings can hurt a nation’s economic productivity thus causing detriment to individuals within that nation.Who...

Fed Model – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Fed Model?The Fed model is a metric that compares the earning yields of the S&P 500 with the yield generated by a long-term (10 years) U.S Treasury bonds to determine whether bond rates are set appropriately.How Does the Fed Model Work?The Fed model...