Members of Congress threatened to default on the debt in 2011. They threatened to raise taxes and cut spending with the fiscal cliff in 2012. They cut spending through sequestration and shut down the government in 2013. Nominal GDP measures this output without adjusting for inflation. To calculate the velocity of money, you must use nominal …
The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities, and currencies. People who engage in arbitrage are called arbitrageurs (/ˌɑːrbɪtrɑːˈʒɜːr/). Arbitrage is generally exploited by large financial institutions because it requires significant resources to identify the opportunities and execute the trades. They are often performed with the use …
What Is Arbitrage? Definition, Example, and Costs Read More »
