To what extent did the movements in the stock market hurt

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Question: During the early 2000s, the Case-Shiller U.S. Home Price Index, a measure of average home prices, rose continuously until it peaked in March 2006. From March 2006 to May 2009, the index lost 32% of its value. Meanwhile, the stock market experienced similar ups and downs. From March 2003 to October 2007, the Standard and Poor's 500 (S&P 500) stock index, a broad measure of stock market prices, almost doubled, from 800.73 to a high of 1,565.15. From that time until March 2009, the index fell by almost 60%, to a low of 676.53. How do you think the movements in home prices both influenced the growth in real GDP during the first half of the decade and added to the concern about maintaining consumer spending after the collapse in the housing market that began in 2006? To what extent did the movements in the stock market hurt or help consumer spending?

Reference no: EM131530613

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