What does research indicate about the effect volatility of stock-price averages

Question

What does research indicate about the effect volatility of stock-price averages on the stability of the macroeconomy?

A. The wealth effects of stock price changes are a major cause of macroeconomic instability; the investment effects are not a major cause of instability

B. The investment effects of stock price changes are a major cause of instability, but the wealth effects are not a major cause of instability

C. Both the wealth and investment effects of stock price changes are a major cause of instability in the macroeconomy

D. Neither the wealth nor the investment effects of stock price changes are a major cause of macroeconomic instability

Explanation / Answer

D. Neither the wealth nor the investment effects of stock price changes are a major cause of macroeconomic instability

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.