Money supply
Per capita income
Unemployment rate
Manufacturing and Trade
Answer is Right!
Answer is Wrong!
The correct answer is: A. Money supply.
The money supply is the total amount of money in circulation in an economy. It is a key factor in determining the level of economic activity, and therefore the stock market. When the money supply increases, it leads to more spending and investment, which can boost the stock market. Conversely, when the money supply decreases, it can lead to less spending and investment, which can hurt the stock market.
Here is a brief explanation of each option:
- Per capita income is the average income per person in an economy. It is a measure of the level of economic prosperity, and therefore can be a factor in determining the stock market. However, it is not as important as the money supply, as it does not directly affect the amount of money in circulation.
- Unemployment rate is the percentage of the labor force that is unemployed. It is a measure of the health of the economy, and therefore can be a factor in determining the stock market. However, it is not as important as the money supply, as it does not directly affect the amount of money in circulation.
- Manufacturing and trade are two important sectors of the economy. They contribute to economic growth, and therefore can be a factor in determining the stock market. However, they are not as important as the money supply, as they do not directly affect the amount of money in circulation.