Question

What happens when the economy and the stock market are both doing well? (1 point)

A. People are unemployed and wages are lower.
B. People spend more money on the economy.
C. People decide to save their money and not invest their money.
D. People are trading stocks and not making a profit.

Answer 1

B, because a rising stock market is usually aligned with a growing economy and leads to greater investor confidence. Investor confidence in stocks leads to more buying activity which can also help to push prices higher