Question

How does the stock market affect the economy? (1 point) a When prices in the stock market are up nothing happens. If they are down, the economy is in trouble. B People who purchase shares of stock move money around but do not impact the economy. C When prices in the stock market are down nothing happens. If they are up, the economy is well. D People who purchase shares of stock are helping those businesses grow and expand.

Answer 1

Answer: a. When prices in the stock market are up nothing happens. If they are down, the economy is in trouble.

Step-by-step explanation:

The beauty of the economy is when the stock market is up. It means there would be more money in circulation to do businesses and when businesses are done the economy is wealthy and everyone is affected positively to a great extent. When there is a crash in the stock market it demoralizes the economic growth and lower stock price would mean a reduction in money used in businesses as companies won't want to commit much funds to doing business.