ECON102 Chapter Notes - Chapter 8: Dow Jones Industrial Average, Tax Credit, Credit Risk

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Maryann Vaughan

Document Summary

Imagine you"ve just graduated from university and you want to open your very own business, an economic forecasting firm. Before you begin making cash money selling your forecasts you"re going to have to incur a few (substantial) costs. For example you have to buy computers, furniture, hire employees ect each of these items is a type of capital that"ll be used in the future to produce and sell the company"s services. As any young, econ major, entrepeneur, you are probably broke as fuck. So in order to finance your capital investments you have a few options: 1) your life savings, wrong you don"t have enough nigga: burrowing from a friend or a relative. In this case, you would have to promise to repay the due amount at a later date and on top of that pay interest for the use of the cash money.