Question: To raise wealth and stimulate private spending suppose the central
To raise wealth and stimulate private spending, suppose the central bank lowers interest rates, making stock market investment relatively attractive. Which stock market index would you monitor to judge the effectiveness of the policy: the Dow Jones Industrial Average or the S&P 500? Why?
Answer to relevant QuestionsSuppose you see evidence that the stock market is efficient. Would that make you more or less likely to invest in stocks for your 401(k) retirement plan when you get your first job? Why is a booming stock market not always a good thing for the economy?You peruse the available records of some public figures in your area and notice that they persistently gain higher returns on their stock portfolios than the market average. As a believer in efficient markets, what ...Have stock dividends become a more important source of income to U.S. households? Plot since 1959 the share of dividend income (FRED code: B703RC1Q027SBEA) in personal disposable income (FRED code: DSPI). Can you explain the ...What kind of an option should you purchase if you anticipate selling $1 million of Treasury bonds in one year’s time and wish to hedge against the risk of interest rates rising?
Post your question