Unformatted text preview: C. Core Principle 3: Information is the basis for decisions a. The more important decision, the more information we gather b. Collection and processing of information is the foundation of the financial system D. Core Principle 4: Markets determine prices and allocation resources a. Markets are the core of the economic system b. Markets channel resources and minimize the cost of gathering information and making transactions c. The better developed the financial markets, the faster the country will grow E. Core Principle 5: Stability improves welfare a. A stable economy reduces risk and improves everyone’s welfare b. Financial instability in the autumn of 2008 triggered the worse global downturn since the Great Depression c. A stable economy grows faster than an unstable one...
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This note was uploaded on 03/02/2011 for the course ECON 121 taught by Professor Labadie during the Spring '10 term at GWU.
- Spring '10
- Supply And Demand