Probability of a superpower confrontation

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-Inflation rates were very low and were expected to remain so-oil prices were especially low. Telephone and airline companies slashed prices as a result of increased competition.

-The Cold War era had ended. There were regions experiencing political unrest, the probability of a superpower confrontation had declined.

-President Clinton had raised taxes and would do so again.

-The government's role in the economy under President Clinton's administration was expected to shrink.

-(5 points) Given these predictions, would you concentrate your investments in financial or tangible assets? If financial assets, would you invest in airline and oil stocks or auto manufacturing firms? Explain why.

-(5 points) Explain the relationship between the industries selected and the reason given for the decline in inflation expected in the future.

Reference no: EM133070269

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