asked 173k views
8 votes
The wealth of an economy is generated by real assets. The availability of tradable financial assets has no effect on the wealth of an economy. Do you agree

asked
User Clausndk
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7.7k points

1 Answer

13 votes

Answer and Explanation:

In the case when the financial states are available so it creates an impact on the wealth of an economy because the price of the financial assets would be represent as a confidence indicator for an economy.

Now if the financial asset price would be high so the confidence would also be high this would develop a positive impact over the economy and vice versa

Also the tradable financial asset would be classfied as a performance comparision.

answered
User Jaetzold
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8.8k points
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