Evidence from the U.S. economy following the stock market crash of 1987 indicates that

Question

Quizplus · Accepted Answer

Studies have shown that the 1987 stock market crash had little impact on consumption or investment spending, indicating that the effects of the crash were contained within the financial markets and did not spill over into the broader economy. There is no evidence to suggest that eliminating program trading, banning specialists, or futures trading would have prevented or mitigated the crash.