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Is a booming stock market always a good thing for the economy? A. No. Stock prices may rise despite other negative economic indicators which could

Is a booming stock market always a good thing for the economy?

A. No. Stock prices may rise despite other negative economic indicators which could lead to a misallocation of resources.

B. No. Rising stock prices discourage investing which could reduce economic growth.

C. Yes. Rising stock prices lead to increased consumer spending and robust economic growth.

D. Yes. Any increase in shareholder wealth will lead to greater economic growth and higher standards of living.

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