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Unformatted text preview: Greg Kalai IB Economics 1 How can expectations lead to an upwards-sloping demand curve? During certain market times, people have different feelings towards specific aspects of the market and depending on signals the market gives, they determine their expectations for the future. The future may often be devious and sly; it is are not manifest in big letters, but people expect it to either grow, decrease in size or stay the same. Their feeling about the market in general, one might argue, sets the tone for the market itself. Some economists have called attention to the expectations of reflation and rising head interest rates that Roosevelt's words and actions portended in the time of the Great Depression in the 1920s. Some credit the U.S. economy's recovery from the Great Depression was driven by a shift in expectations brought about by the policy actions of President Franklin Delano Roosevelt (mainly in the first 100 Days, but even thereafter). One of the first actions that FDR initiated was (mainly in the first 100 Days, but even thereafter)....
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- Fall '11