Solutions Economics

Solution) Suppose you hear a commentator on the radio state that when interest rates fall, the stock market [t

Question: Suppose you hear a commentator on the radio state that when interest rates fall, the stock market [the Dow Jones average say] tends to rise. {NOTE -- You are not supposed to justify the statement.} Draw a graph of such a relationship for yourself.

a. What are the axes? Worth 1 point

b. Describe the slope – positive, negative? Worth 3 points

c. What factors would cause a movement along the graph? WORTH 3 points

d. What factors might cause a shift in the graph? Example. WORTH 3 POINTS

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Solution: The downloadable solution consists of 1 page
Solution Format: Word Document


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