Why Are Monetary Authorities Concerned About Stock Market Booms

question 98

Multiple Choice

Why are monetary authorities concerned about stock market booms?

• A) because the booms decrease consumption spending
• B) because the booms decrease investment spending
• C) because the booms increase consumption spending
• D) because the booms increase government deficit

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Definitions:

Public Debt

The total amount of money owed by the government to creditors, which can include domestic or foreign individuals, corporations, or other governments.

National Debt

The total amount of money that a country's government has borrowed, typically as a result of budget deficits.

Budget Surpluses

occur when a government's revenues exceed its expenditures during a specific period of time.

U.S. Government

The federal government of the United States, consisting of three branches: legislative, executive, and judicial.