Explore BrainMass
Share

Explore BrainMass

    CPI and S&P500 Stock Index

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

    Please assist with the following problem. Provide at least 300 words.

    Based on the CPI and S&P500 Stock Inex give a recommendation as to whether short-term interest rates should be raised, lowered, or kept the same in the current economic conditions.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:03 am ad1c9bdddf
    https://brainmass.com/economics/economic-indicators/cpi-and-s-p500-stock-index-361196

    Solution Preview

    Problem: Based on the CPI and S&P500 Stock Inex give a recommendation as to whether short-term interest rates should be raised, lowered, or kept the same in the current economic conditions.

    Solution:
    The CPI gives the average level of prices and is a good indicator of consumer demand. The S&P 500 is a good proxy for investor confidence, and tells a story of what investors expect will happen in the future. If they believe companies are going to generate more profit the S&P 500 rises, else it falls. Over ...

    Solution Summary

    In this posting, CPI and S&P500 Stock Index are assessed. It helps give a recommendation as to whether short-term interest rates should be raised, lowered, or kept the same in the current economic situation. The explanation is given in 334 words.

    $2.19