Which of the following would most likely affect the P/E ratio of the market in general?

Question

Quizplus · Accepted Answer

The P/E ratio of the market can be influenced by a variety of factors including government fiscal policy changes, which can affect economic growth and corporate profits; declining earnings of major companies, which directly affect the denominator of the P/E ratio; and changes in inflation expectations, which can alter discount rates and future earnings expectations. All these factors can significantly impact the overall market's P/E ratio.

Which of the Following Would Most Likely Affect the P/E