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.