Author Question: A boom in the stock market affects the economy because (Read 70 times)

Brittanyd9008 · **on:** Apr 19, 2019

Question 1

A boom in the stock market affects the economy because

◦ firms invest more as demand grows.
◦ consumers consume more as stock prices increase.
◦ wealth of consumers grows as stock prices increase.
◦ All of these

Question 2

A boom in the stock market affects the economy because

◦ firms invest more as demand grows.
◦ consumers consume less with their money tied up in assets.
◦ the stock market causes the money supply to rise.
◦ interest rates fall.

reversalruiz · **Reply #1 on:** Apr 19, 2019

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