Is there a small chance that the stock market , interest rates, and the economy could actually suffer because of the high price of gas?
Explain?
WINFRED
Comments
Yes, it costs more to transport goods from production to suppliers, from suppliers to retailers. Price of food and goods goes up, petrol costs more too to the public, therefore there is less money to spend. With less money circulating price of goods goes up more, interest rates increase to keep a lid on inflation, property becomes expensive to buy, credit is more difficult to obtain creating less expenditure and more inflation.
most definitely !!! there is a certain amount of wealth that is created each year by any country, the country then trades its good and services = its wealth for other commidities that it requires, this case gas therefore when the price of gas goes up US has to spend more of its income in purchasing oil therefore the per capita wealth of its citizens suffers as they now have to spend more for oil. Hence all in all yes the economy, interest rates and the stock market actually do suffer.
