The Key Reason That the Bursting of the Tech-Stock Bubble

question 62

Multiple Choice

The key reason that the bursting of the tech-stock bubble of the late 1990s had a mild impact on the macroeconomy is ________.

• A)rapid intervention by the central bank averted economic catastrophe
• B)the increase in tech-stock prices was driven by the economic fundamental of technological progress
• C)the technology sector is a rather small portion of the aggregate economy
• D)tech-stock prices had not been much influenced by credit availability

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus, resulting from its association with an unconditioned stimulus.

Cognitive Therapy

A form of psychotherapy that focuses on changing negative thought patterns to improve emotions and behaviors.

Aaron Beck

A psychiatrist known as one of the founders of cognitive therapy, Beck developed influential psychological models of depression and proposed the cognitive triad of negative thought patterns.

Negative Thoughts

Cognitive processes characterized by pessimism, criticism, or despair, which can impact emotional well-being and mental health.