Explore BrainMass

Explore BrainMass

    Macroeconomic Events

    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!

    Please help me understand how macroeconomic events impact asset values in both the short and long run. Please include monetary and fiscal policy and shocks in the explanation.

    © BrainMass Inc. brainmass.com December 24, 2021, 7:22 pm ad1c9bdddf
    https://brainmass.com/economics/taxation/macroeconomic-events-183166

    Solution Preview

    Macroeconomic shocks refer to sudden changes that occur in a country's macroeconomic situation. It is an economic shock that manifests at the macroeconomic level. Macroeconomic shocks have strong impacts on where people will invest. They also have an effect on the wealth of those who buy and sell in these markets. Market shocks lead people to decide in the sector in which they invest. Macroeconomic shocks also determine where people will invest and what returns they will get for their investment. Macroeconomic shocks immediately after the purchase of assets will have long term effects on the value of assets purchased. Macroeconomic shocks long after the purchase of assets or close to the assets being written of have a short run effect on the value of the assets. The exogenous shock affects the ...

    Solution Summary

    This solution discusses the effect of macroeconomic events on the economy.

    $2.49

    ADVERTISEMENT