Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 4: Q24 (page 105)

Suppose the U.S. economy began to grow more rapidly than other countries in the world. What would be the likely impact on U.S. financial markets as part of the global economy?

Short Answer

Expert verified

US financial markets (specially stock market) would grow. This would imply more investment & other opportunities for US.

Step by step solution

01

Basic Internal Impact 

If U.S. economy began to grow more rapidly than other countries, then US financial markets would outperform the average global financial markets' growth.

Growth will also be reflected in US stock market growth, due to more expectations of higher economic growth.

02

Derived International Impact 

More growth & stock market boom will imply that US will get more foreign investment. American markets & companies would get higher potential to leverage the upcoming opportunities, and outshine globally.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Identify each of the following as involving either demand or supply. Draw a circular flow diagram and label the flows A through F. (Some choices can be on both sides of the goods market.)

a. Households in the labor market

b. Firms in the goods market

c. Firms in the financial market

d. Households in the goods market

e. Firms in the labor market

f. Households in the financial market

Select the correct answer. A price ceiling will usually shift:

a. demand

b. supply

c. both

d. neither

Identify each of the following as involving either demand or supply. Draw a circular flow diagram and label the flows A through F. (Some choices can be on both sides of the goods market.)

a. Households in the labor market

b. Firms in the goods market

c. Firms in the financial market

d. Households in the goods market

e. Firms in the labor market

f. Households in the financial market

If a usury law limits interest rates to no more than 35%, what would the likely impact be on the amount of loans made and interest rates paid?

Under what circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living wage be a binding price floor?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free