Question

During which phase of the business cycle do stock prices increase rapidly?

A) Recovery
B) Recession
C) Boom
D) Depression

Answer 1

Boom

Step-by-step explanation:

Stock prices increase because companies are making more profits. AKA the stock becomes more valuable so their stock becomes more expensive.

Answer 2

C) Boom

Note the words "increase rapidly" which means that it is C) Boom.

For instance, if a businesses is booming, it is growing and turning profits at a great amount. It is the same for the stock prices of a business.

hope this helps