I. How Will the American Economy Respond?

October 1955
New Republic;10/10/55, Vol. 133 Issue 15, p5
The article presents information on the economic conditions in the U.S. When U.S. President Dwight D. Eisenhower was stricken, and odds favoring the, election of Democratic Administration next year were greatly increased. Business reacted in three ways, the stock market took a sharp drop, the grain market rose and big corporations announced they would proceed with substantial, long-range investment in new plant and equipment. These reactions betrayed several kinds of confidence, which economists would interpret by the maxims that when the level of prices on the stock market goes up, this reflects confidence in a high rate of corporation profits.


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