What effect might a fall in stock prices have on business investment a fall in stock prices might cause businesses to?

What effect might a fall in stock prices have on business investment? The lower price for a firm’s shares means that it can raise a smaller amount of funds, and so investment in plant and equipment will fall.

Which of the following is likely to occur if the stock market has been rising?

Stock​ prices, as measured by the Dow Jones Industrial​ Average, have: Which of the following is likely to occur if the stock market has been rising quickly? Consumers are willing to spend more on goods and services.

When interest rates rises how might businesses and consumers change their economic behavior or?

2- When interest rates rise, how might businesses and consumers change their economic behavior? Businesses would cut investment spending because the cost of financing this spending is now higher, and consumers would be less likely to purchase a house or a car because the cost of financing their purchase is higher.

How would a fall in the value of the pound sterling affect Canadian consumers?

How does a fall in the value of the pound sterling affect British consumers? Foreign goods are not relatively more expensive; British consumer are hurt. worse off.

When interest rates decrease how might businesses and consumers?

1. When interest rates are lowered, businesses and consumers’ economic behavior change because this increases the rate of borrowing due to low charges…

Is everyone worse off when interest rates rise?

4. No, not everybody is worse off when interest rates rise. People who borrow to purchase a house or a car are worse off because it costs them more to finance their purchase; however, savers benefit because they can earn higher interest rates on their savings.

What effect might a rise in stock prices have on consumers decisions to spend a rise in stock prices will generally lead to ▼ less more consumer spending?

What effect might a rise in stock prices have on consumers’ decision to spend? Higher stock prices mean that consumers’ wealth is higher and so they will be more likely to increase their spending.

How do fluctuations in currencies impact companies?

In general, a weaker currency makes imports more expensive, while stimulating exports by making them cheaper for overseas customers to buy. A weak U.S. dollar allows your export business to remain competitive in international markets.