Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)
Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)
12th Edition
ISBN: 9780134733821
Author: Frederic S. Mishkin
Publisher: PEARSON
Question
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Chapter 20, Problem 1Q
To determine

To explain: Whether the statement is true, false, or uncertain.

Expert Solution & Answer
Check Mark

Explanation of Solution

It may or may not be true, means uncertain since, only buying and selling of stocks takes place in the stock exchange and no production takes place. However, higher stock market may happen during the time of economic growth, which may lead to increase in autonomic investment by the firm. Hence, this statement may or may not be true depending on the situation.

Economics Concept Introduction

Introduction: Stock exchange refers to a place where buying and selling of securities takes place. Its main function is to provide a place where buyer and seller can buy and sell different securities which gives both buyer and seller liquidity.

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