A negative demand shock occurs when there is a sudden decrease in the demand for goods and services in an economy. Among the options provided:
A. A rising stock market increases the wealth of consumers. - This would typically lead to an increase in demand, not a negative shock.
B. The government passes a bill to increase military spending. - This would likely lead to an increase in demand for goods and services related to military spending, not a negative shock.
C. Foreign consumers increase their demand for US goods and services (exports). - This would also result in an increase in demand, rather than a negative shock.
D. A stock market crash decreases the wealth of businesses. - This scenario would likely lead to a decrease in consumer and business confidence, causing a decline in spending and investment, which constitutes a negative demand shock.
Therefore, the correct answer is D. A stock market crash decreases the wealth of businesses.