Suppose a Booming Stock Market Encourages Consumption Spending to Rise

question 157

Multiple Choice

Suppose a booming stock market encourages consumption spending to rise dramatically. What would be the most likely long-run impact?

• A) Prices would fall.
• B) GDP first rises, and then falls back to long-run equilibrium.
• C) A recession occurs.
• D) The impact cannot be determined from the information given.

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Definitions:

Indian Allotment Act

Refers to several U.S. laws that allowed for the division of tribal lands into individually owned parcels, significantly impacting Indigenous sovereignty and land ownership.

Intentions

Plans or objectives that one intends to accomplish or achieve, reflecting a person's motivation and purpose.

Consequences

The outcomes or results that follow directly from actions or decisions.

Racial Categories

Classifications of humans into groups based on physical traits, ancestry, genetics, or social relations, often used for demographic purposes but critiqued for reinforcing stereotypes.