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Explain the following economic relationships: interest rates and stock prices; money supply and excess liquidity and...

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Finance

Explain the following economic relationships: interest rates andstock prices; money supply and excess liquidity and stock price;government budget deficit and interest rates; government budgetdeficit and stock price; $ and trade balance; US versus foreigninterest rates and the $; demographics and agin and stockprices.

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Interest rates and stock prices THERE IS AND INVERSE RELATIONSHIP BETWEEN INTEREST RATE AND STOCK PRICES WHICH MEANS WHEN INTEREST RATE ARE RISE THE STOCK PRICE BECOME LOW AND VICE VERSA RISING OR FALLING INTEREST RATE INDIRECTLY AFFECTS THE MARKET THE INCREASED INTEREST RATE REDUCES THE DISPOSABLE INCOME OF THE INVESTORS BECAUSE THEY REDUCE THEIR EXPENDITURETHUS STOCK PRICE DROP ON THE OTHER HAND WHEN THE INTEREST RATE FALL THE INVESTOR ARE READY TO SPEND MORE WHICH LEADS TO RISING STOCK PRICE Money supply and Excess Liquidity and Stock price THERE IS A DIRECT RELATIONSHIP BETWEEN MONEY SUPPLY STOCK    See Answer
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Explain the following economic relationships: interest rates andstock prices; money supply and excess liquidity and stock price;government budget deficit and interest rates; government budgetdeficit and stock price; $ and trade balance; US versus foreigninterest rates and the $; demographics and agin and stockprices.

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