Question

6) We are at the end of the third year of the current presidential administration. During the first two and a half years the markets have skyrocketed to new highs. In the past six months the market has been fairly rocky. What are your expectations for the economy and the financial markets in the next two years? What about the overall economy?

Answer 1

Answer: 6 Given we are at the end of 3rd year of corrent presidential adminstration. · Diring the first two and half years the markete hawe Skyrockete to new hight In the post 6 months the market has been fairly Jocky. Expectations for the economy and the financial markets in the next 2 yr are: During the first two and half years markets have Skyrocketed. This means people have been investing more and more offets • There after the interest rate will increase. • The investment amount will decrease as the cost of borrowing ! will be more and thus' expects the retom to be more. Therefore, investment will gradually decreafe in the economy. This will lead to a decrease of offerts in the economy. The economy will not be sky rocketed after two

years of time. since the us china trade was has epealated the Global recession looked near which pared way for us fed to adopt an expansimary monetary policy by cutting down interest rates of againt contractionary monetary policy. As a result the US Gop is all set to grow in next two years and the recession is averted however the us dollar is set te depreciate and not remain strongest cemency anymore which will also cause crude oil and Gold prices to get higher in the international market. a since the corporation taxes are lower and liquidity is high firms will have higher caith flows and net profitability and financial markets will rise in next two years