13
QuizMultiple Choice

Investing — Unit test

Question 13 • GA-GSE Personal Finance and Economics

When the economy grows, the market grows, most likely because

Answer
A
more investors are willing to take risks.
B
the government has decreased spending.
C
the government has increased taxation.
D
investors have a greater desire for profits.

Explanation

Economic growth generally means incomes and business activity are rising, which can make investors more confident about opportunities and more willing to take risks. That confidence can lead to more investment and a growing market. Reduced government spending or increased taxation would not be the most likely explanation for this growth.

AI-written and checked against the verified answer.

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