The Price of a Stock Will Decrease,ceteris Paribus,when

question 60

Multiple Choice

The price of a stock will decrease,ceteris paribus,when

• A)There is a shortage of the stock at the current price.
• B)The interest rate increases.
• C)The supply of the stock decreases.
• D)Future earnings expectations increase.

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Definitions:

Equity

Fairness or justice in the way people are treated, or the ownership interest of shareholders in a company.

Efficiency

The optimal production and distribution of resources in a way that maximizes the net benefit to society or an economy.

Total Surplus

A measure of society's overall net advantage resulting from the consumption and production of a good or service, comprised of both consumer and producer surplus.

Fire Marshal

An official responsible for enforcing fire safety codes and regulations, as well as investigating fires to determine their cause.