Explain Why a Continued Stock Market Rally (That Is, a Continued

question 151

Essay

Explain why a continued stock market rally (that is, a continued increase in stock prices) will lead to an increase in consumption.

---

Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response on its own.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that automatically triggers a response without any need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.