Based on current information on the U.S. stock market and the debt markets, including interest rates: (a) would you recommend that a firm raise funds through borrowing or by issuing stock? (b) would you recommend that a household build wealth by investing in the stock market or in real estate?   Explain your answers to a. and b.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Based on current information on the U.S. stock market and the debt markets, including interest rates:

(a) would you recommend that a firm raise funds through borrowing or by issuing stock?

(b) would you recommend that a household build wealth by investing in the stock market or in real estate?  

Explain your answers to a. and b.

Hint: You may begin with general information about current developments in the equity and debt markets, and the discuss how firms and households may use this information to make short-term and long-term financial decisions.

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