Which of the following actions might we logically expect to result from rising stock prices?
a. Jim decreases his consumption spending.
b. Firms sell fewer shares of new stock.
c. Firms spend more on investment.
d. None of the above is correct.
c
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Last week, 13 Mexican pesos could purchase one U.S. dollar. This week, it takes 11 Mexican pesos to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Mexico and ________ U.S
aggregate demand. A) increase; decrease B) increase; increase C) decrease; increase D) decrease; decrease
If a firm in a perfectly competitive industry is experiencing average revenues greater than average costs, in the long-run
a. Some firms will leave the industry and price will rise b. Some firms will enter the industry and price will rise c. Some firms will leave the industry and price will fall d. Some firms will enter the industry and price will fall
The European Central Bank is responsible for
A. protecting European Union member countries from unfair trade practices. B. assuring full employment in the European Union. C. implementing European Union monetary policy. D. the bailout of European Union countries in financial trouble.
When demand is inelastic
A. The percentage change in price is greater than the percentage change in quantity demanded. B. The product in demand has many substitute goods. C. Buyers are very sensitive to changes in price. D. The percentage change in quantity demanded is greater than the percentage change in price.