Stock Prices, Investment, and Causation. Figure 12.4 shows that from 1990 through 2013, investment spending followed the same trends as stock prices. Does this mean that movements in stock prices cause movements in investment spending? Give an alternative explanation for the fact that they move together. (Hint: Think of movements in real GDP.)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here