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Credit Markets and Global Economic Conditions

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Project the effect of credit markets on the economy.

Project the effect of global economic conditions regarding trade and specialization
business decisions.

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This solution thoroughly explains the effect of credit markets on the economy. This solution also explains the effect of global economic conditions regarding trade and specialization business decisions.

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Project the effect of credit markets on the economy.

The credit market is basically where debt and securities are traded - investors buy and sell debt securities, commercial paper, and other such investments. When they buy the securities, the investors are literally investing in the companies and generating revenue for the company. The markets are regulated in the U.S., and the main reason why is so that consumer confidence is high on the market. We want investors putting their money into the markets knowing that the markets are regulated -- i.e. that there's no cheating or other acts taking place that would make the markets unfair. We don't give anyone an unfair advantage, which is why things like insider trading are illegal. One person can't use personal knowledge obtained (like the CEO of a company that finds out the company is going to fold), and use that info to buy or sell ...

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