Tag: economic

DefinitionIn economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the...

What is 'Rational Behavior' A rational behavior decision-making process is based on making choices that result in the most optimal level of...

What is the 'Random Walk Theory' The random walk theory suggests that stock price changes have the same distribution and are independent of each other,...

What is 'Real Estate Settlement Procedures Act - RESPA' This act was designed to protect potential homeowners and enable them to become...

DefinitionA lease is a contractual arrangement calling for the to pay the lessor for use of an asset. Property, buildings and vehicles are common...

What is 'Impression' A metric used to quantify the display of an advertisement on a web page. Impressions are used in banner...

What is an absorbed cost and how does it impact a business's bottom line An absorbed cost is an overhead cost that has been fully...

What is the absorption rate The real estate absorption rate is the rate at which properties are sold in a specific market. It is calculated...

What is a 'Random Variable' A random variable is a variable whose value is unknown or a function that assigns values to...

How to Calculate the Real Rate of Return on Your Investment The real rate of return helps investors determine which investment offers a higher return...