Performance Indicators

Finance

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The financial markets of a country can reflect the current state of an economy but they are not always linked. However, if an economy is growing, business profits will increase as consumers spend discretionary income. If an economy is headed toward a recession, and consumers are less likely to make purchases, a businesses' profits could decrease which reduces the businesses' value in a financial market.

Financial Analysis
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Describe the relationship between economic conditions and financial markets (SP)