Wealth Increases in the United States Because the Value of the Stock

question 64

Multiple Choice

Wealth increases in the United States because the value of the stock market increases; if all else is equal,this would cause

• A) a larger gap between the real and nominal rates of interest.
• B) the demand for loanable funds to increase.
• C) the supply of loanable funds to increase.
• D) the supply of loanable funds to decrease.
• E) corporations to be more willing to borrow.

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Definitions:

Deficit

A deficit occurs when an entity's expenditures exceed its revenues over a specified period, often referring to government budgets.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often resulting in downward pressure on the price.

Thomas Robert Malthus

An English economist and demographer best known for his theory that population growth will outpace agricultural production, leading to widespread poverty and famine.

Malthusian Theory Of Population

Population tends to grow in a geometric progression (1, 2, 4, 8, 16), while food production tends to grow in an arithmetic progression (1, 2, 3, 4, 5).