Do Home Sales Prove the U.S. Economy Is Gaining Steam?

The video discusses the current state of the economy, focusing on the housing market, the Federal Reserve's influence on interest rates, and the impact of currency fluctuations. It highlights mixed signals in the housing market, the Fed's cautious approach to rate hikes, and the challenges faced by exporters due to a strong dollar. The discussion also covers consumer spending, wage growth, and economic indicators, providing insights into the overall economic outlook.

What is one reason the economy is showing mixed signals according to the discussion?

• A decline in technology stocks

• A surge in home sales

• An increase in unemployment rates

• A decrease in consumer spending

How does a strong dollar impact inflation?

• It has no effect on inflation

• It decreases inflation by lowering import prices

• It increases inflation by raising import prices

• It causes inflation to fluctuate unpredictably

How does the Federal Reserve's approach to interest rates differ when addressing inflation versus moderate growth?

• It does not change its approach

• It is more aggressive when addressing moderate growth

• It is less aggressive when addressing inflation

• It is more aggressive when addressing inflation

What is a potential consequence of a strong dollar for companies that export goods?

• Lower production costs

• Decreased export competitiveness

• Increased export opportunities

• Higher domestic sales

Why might some people find it difficult to believe that home prices are still affordable?

• Because of rising food prices

• Due to increasing transportation costs

• Because of past experiences with housing market crashes

• Due to high unemployment rates

What is a potential psychological effect of rising mortgage rates on consumers?

• Increased willingness to invest in stocks

• Decreased interest in purchasing homes

• Greater confidence in the economy

• Increased spending on luxury goods

What is a key factor that might keep the Federal Reserve cautious about raising interest rates?

• High levels of corporate investment

• Rapid increase in consumer spending

• Surge in housing market activity

• Stagnation in real wage growth