Figure 12.4 shows that from 1990 through 2013, investment spending followed the same trends as stock prices.

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Figure 12.4 shows that from 1990 through 2013, investment spending followed the same trends as stock prices. Does this mean that movements in stock prices cause movements in investment spending? Give an alternative explanation for the fact that they move together.
Figure 12.4
Figure 12.4 shows that from 1990 through 2013, investment spending
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Macroeconomics Principles Applications and Tools

ISBN: 978-0134420684

9th edition

Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez

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