Which of These Best Describes Prices in a Market Economy

The marginal increase in cost of capital in a fast growing economy where nominal GDP will probably grow by 12 14 16 a year does not impact the stock prices much. The major characteristic of a market economy is the.

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A market economy is an economic system in which the decisions regarding investment production and distribution to the consumers are guided by the price signals created by the forces of supply and demand where all suppliers and consumers are unimpeded by price controls or restrictions on contract freedom.

. This is something I have said in the past also that in India growth is the key driver of stock returns and some changes in cost of capital tend to lose significance over time says Prashant Jain CIO.

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