Explore BrainMass

Explore BrainMass

    Does One Market Down Mean More Demand from Other Companies?

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Given that the economy grows (is allowed to grow) through the banking system and the creation of money through lending, if one market is down (i.e people are spending more on other goods) are we to assume that these other companies that are facing increased demand will borrow enough (to expand) to counter balance the amount the depressed market would have borrowed - to bring in more money into the economy?

    Many thanks.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:19 pm ad1c9bdddf
    https://brainmass.com/economics/economic-growth/market-down-increased-demand-rival-companies-40245

    Solution Preview

    There are two main concepts to make note of.
    Firstly, it must be noted that in most economies it can be readily assumed that they are inter-related in many ways. This suggests the implication that if one sector is doing well, then it will run off into other sectors, although this is often subjective on other things such as trends in the market. For example even if the IT market is oding well it does not necessarily mean that the market for sports ...

    Solution Summary

    The expert determines if one market down means more demand from other companies.

    $2.49

    ADVERTISEMENT