You have to have a workable investment project to make a profit. That's under your control. But political risk, which affects profitability of any project, is not under your control. Explain.
Answer to relevant QuestionsWhat is meant by capital deepening? How does it affect labor productivity? Give an example. How does the law of diminishing returns come into play? Why do we need money? Explain how changes in the money supply can result in changes in real GDP. What restrictions did the Glass-Steagall Act impose on the banking system? Who prints currency for whom? How does the currency finally make its way to the thousands of banks operating in the economy?
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