Why is describing trends in the stock market (broadly defined) important for describing the national economy in a market analysis?
The stock market is the single biggest competitor for real estate investment, when stocks are falling in value real estate will rise. |
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The stock market is a leading indicator suggesting people believe firms will be more profitable in the future. |
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The stock market mirrors real estate prices in large cities, but is not representative of smaller municipalities or rural areas. |
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The stock market is not important in describing the national economy because only local factors matter for real estate markets. |
An alternative policy to Rent Control is to offer rental vouchers. These are payment made to landlords on behalf of tenants to supplement monthly rent. What does a standard markets model predict this policy will do?
Increase Rents, and Reduce the number of units supplied. |
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Decrease Rents, and Increase the number of units supplied. |
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Increase Rents, and Increase the number of units supplied. |
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Decrease Rents, and Reduce the number of units supplied. |
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None of the above. |
1 ans ) B) the stock market is a leading indicator suggesting people believe firms will be more profitable in the future.
Explanation: Long term funds will be raised for corporations with the help of stock market.It is a leading indicator for economy.Firms will be profitable with stock markets.
2 ans ) B) decrease rents,increase in number of units supplied
Explanation:In standard market model if there is decrease in price then quantity demanded will increase.If the rent decreases then number of units supplied will increase.
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