What is the significance of the `max_connections` setting in MySQL and how does it affect stability?

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Grade: Education Subject: Support
What is the significance of the `max_connections` setting in MySQL and how does it affect stability?
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The `max_connections` setting limits the maximum number of simultaneous client connections to the MySQL server. If you exceed this limit, MySQL may start dropping connections or shutting down. Increasing it might help, but consider the server's resources and the number of concurrent users.