Answer to Question #54464 in Macroeconomics for Kelvin
There is a nearly infinite number of factors that can cause the stock market to move significantly in one direction or another. This can include such things as economic data, geopolitical events and market sentiment, among a myriad of other factors. There is a constant in each of these situations, however. In any stock market move, whether up or down, there is a significant difference between supply and demand.
A rise in the stock market indicates, that level of current and expected growth in the world economy is comparatively high and the economy is expected to grow in the nearest future.
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